Why did the great depression occur?
The Great Depression was a recessionary fiscal event, caused by
the overvaluation of corporate assets and by speculative investment
(mostly unwise, some illegal). It was a natural down cycle that was
exacerbated by a number of conditions, including a laissez
faire attitude by government toward the practices of big
business, banks, and investment companies. (This was also the case
for several financial crises in the late 20th and early 21st
centuries.) The fact that this recession affected countries around
the world indicates that it was not the result of activities only
within the US.
The trigger of the Great Depression, the Wall Street stock
market crash of 1929, resulted in a severe loss of production
capital that deepened the Depression and created widespread