The economic crisis of the 1920s, often referred to as the Great Depression, was a profound global economic downturn that spanned the 1930s.
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It was triggered by a combination of factors, including the aftermath of World War I, excessive speculation in the stock market, overproduction in industries, and flawed economic policies. During the 1920s, there was a rapid expansion of credit, leading to a speculative bubble in the stock market. However, the bubble burst in 1929, resulting in a catastrophic stock market crash. This event shattered public confidence in the economy, causing a significant decline in consumer spending and business investment. As a consequence, unemployment soared, numerous businesses failed, and economic activity contracted sharply. Governments struggled to find effective solutions, and protectionist measures further exacerbated the crisis by restricting international trade. The Great Depression had far-reaching social and political ramifications, ultimately sparking transformative changes in economic and political systems across the globe.