The Great Depression, a period of immense economic hardship in the 1930s, wasn't a sudden event. It was the culmination of several interconnected factors. A key contributor was the **stock market crash of 1929**. Fueled by speculative investments and easy credit, the market was a bubble waiting to burst. When it did, panic selling wiped out fortunes and shook confidence.
Beyond the crash, fundamental economic weaknesses played a significant role. **Overproduction** in agriculture and industry led to falling prices and business closures. **Unequal wealth distribution** meant many couldn't afford the goods being produced, further exacerbating the problem. International trade was also impacted. **High tariffs**, like the Smoot-Hawley Tariff Act, stifled global commerce and deepened the economic downturn worldwide. These factors, intertwined with banking failures and a lack of effective government intervention, created the perfect storm that plunged the world into the Great Depression.
