The Great Depression was a prolonged depression from 1930’s until the early 1940s, with unemployment levels of up to 25%, with mass bank and business failures.
What was the cause of the Great Depression of the 1930’s? Anti-capitalist economists and historians claim the crash was the trigger of the Great Depression of the 1930s.
In fact, the government’s Great Intervention into the economy was the cause of the Great Depression of the 1930s. The recession of 1929/1930 became prolonged by the government’s “great intervention”— from the Smoot-Hawley Tariffs to “The New Deal”– that prevented the market from restoring normalcy. Observe that in the 1920 and 1987 Stock Market crashes there was no Great Depression, but minor recessions, because there was no Great Intervention.