The Great Depression, which lasted from 1929 to the late 1930s, stands as one of the most severe economic downturns in modern history. It affected not only the United States but also economies around the world, leading to widespread unemployment, poverty, and a significant drop in global trade. Understanding the primary causes of the Great Depression is essential for grasping how economic systems can falter and what lessons can be learned to prevent similar crises in the future.

One of the most immediate and visible causes of the Great Depression was the stock market crash of October 1929. Throughout the 1920s, known as the “Roaring Twenties,” the U.S. stock market experienced an unprecedented boom. Stock prices soared, fueled by speculation and the widespread belief that they would continue to rise indefinitely. Many investors, including average Americans, purchased stocks on margin, borrowing money to buy more shares than they could afford outright.However, this speculative bubble burst when confidence waned, leading to a massive sell-off. On October 29, 1929, known as Black Tuesday, the stock market crashed, wiping out millions of investors’ wealth overnight. The crash shattered confidence in the U.S. economy and marked the beginning of the downward spiral into the Great Depression.