The Great Depression

Why did the great depression occur?

User Avatar
Wiki User
2016-04-05 13:44:31

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

unemployment.


Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.