The stock market crash of 1929 was a major contributing factor to the Great Depression. The crash caused a loss of confidence in the stock market and the economy, leading to a decrease in investment and spending. This in turn led to a decrease in production and employment, which further deepened the Depression.
2. The Smoot-Hawley Tariff Act of 1930
The Smoot-Hawley Tariff Act of 1930 was a protectionist trade policy that raised tariffs on imported goods. This led to a decrease in international trade, which further reduced economic activity and deepened the Depression.
3. The gold standard
The gold standard was a monetary system in which the value of a currency was fixed to the value of gold. This made it difficult for countries to inflate their currencies and stimulate their economies. The gold standard also led to a decrease in the supply of money, which further reduced economic activity and deepened the Depression.