Answer and Explanation:
The Great Depression was one of the biggest financial crises in the world. It started in the USA and spread to almost all capitalist countries.
The main factor causing this crisis was the economic imbalance related to the supply of cheap credits. This imbalance was caused by the lack of regulation that could manage the supply of these credits.
In addition, the supply of industrial products was also completely unregulated. This sector was producing at a fast pace, but consumers were unable to keep up with this pace, producing an imbalance of supply and demand. This caused the trade to accumulate when stocks of products became obsolete, hoping for a price drop that never happened.
With the economic recovery of European countries, there was a progressive decrease in the taking of credit and American products with these countries, which affected the economy drastically. To stop this damage, the government started to provide very low interest rates, which made national investors to invest everything in the stock exchange and ignore the productive sectors. This led to high speculation on the stock exchange, which reduced the value of the shares to the point of "breaking" completely.
Nevertheless, the productive sector began to produce and invest less and less, leading to factories and bankruptcy and the massive dismissal of employees.
As a consequence of this crash, thousands of people were laid off, many were completely destitute, inflation increased in complete uncontrolled and many economic and social problems were established.
The great depression only ended with the establishment of the New Deal, yet the recovery took a few years to establish itself.
