What was a major cause of the Great Depression?

The stock market crash of 1929 is recognized as a major cause of the Great Depression due to its immediate and profound impact on the U.S. economy. The crash represented a sudden and steep decline in stock prices, erasing significant amounts of wealth and leading to widespread panic among investors and the general public. This catastrophic event not only undermined consumer confidence but also resulted in a decrease in spending and investment, which are critical components of economic activity.

Following the crash, a series of bank failures occurred, as banks that had invested heavily in the stock market lost their assets and were unable to return depositors' savings. The resulting bank runs exacerbated the economic crisis, leading to high levels of unemployment and a sharp decline in industrial production. Overall, the stock market crash set into motion a chain reaction that contributed significantly to the severity and duration of the Great Depression.

In contrast, while the end of World War I did have economic ramifications, it did not directly lead to the conditions that caused the Great Depression. High unemployment from World War II is also not relevant, as this was a period occurring much later than the Great Depression itself. Similarly, a significant increase in population does not connect directly to the financial collapse and economic downturn characteristic of the Great Depression