Answer:
Stock Market Crash of 1929
Bank Failures
Overproduction and Underconsumption
Step-by-step explanation:
The Great Depression was a severe economic downturn that affected the United States and many other countries around the world during the 1930s. Three major causes of the Great Depression were:
1. Stock Market Crash of 1929: The Great Depression's most well-known trigger was the stock market crash that occurred on October 29, 1929, known as Black Tuesday. During this event, stock prices plummeted, wiping out vast amounts of wealth and leading to a loss of confidence in the economy.
2. Bank Failures: The stock market crash triggered a chain reaction of bank failures. Many banks had invested heavily in the stock market or made loans to individuals and businesses that couldn't repay them. As a result, numerous banks collapsed, leading to a significant reduction in the money supply and a lack of confidence in the banking system.
3. Overproduction and Underconsumption: In the years leading up to the Great Depression, there was a boom in industrial production and agricultural output. However, the wages of workers did not keep pace with the increased production capacity, leading to a situation where goods were being produced faster than people could afford to buy them. This resulted in a surplus of goods and contributed to a general economic slowdown.
These three factors, among others, interacted and created a complex web of economic problems that led to the Great Depression, which lasted for much of the 1930s and had profound and lasting effects on the global economy.