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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.
What were the Four Causes of the Great Depression. High demands for consumer goods and agricultural products led to overpopulation. Buying on credit increased personal debt. Buying on margin was a risky market practice--. Bank loans for stock purchases was an unsound practice. The Smoot-Hawley Tariff created trade war worsened world economic conditions.