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The Causes of the Great Depression: A Retrospective. By Kenneth Matziorinis. Introduction. During the 1930s the world experienced a cataclysmic economic collapse, the likes of which that had never been seen before. It was unlike previous. âdepressionsâ when economic activity would always recover following few years.
According to this view, the root cause of the Great Depression was a global overinvestment while the level of wages and earnings from independent businesses fell short of creating enough purchasing power.