History The Great Depression Questions
The stock market crash of 1929 contributed to the Great Depression by triggering a chain of events that led to economic collapse. The crash caused widespread panic and loss of confidence in the economy, leading to a sharp decline in consumer spending and investment. This resulted in a decrease in production and widespread layoffs, leading to a rise in unemployment rates. Additionally, many banks and businesses failed as a result of the crash, causing a financial crisis and further worsening the economic situation. Overall, the stock market crash of 1929 played a significant role in the onset and severity of the Great Depression.