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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.
The immediate cause of the recession that became the Great Depression was the collapse of private investment. This major component of demand fell from $92 billion in 1929 to $9.9 billion in 1932. Exports fell as well but so did imports.