Information \& Evidence: Use information from source above to identify what caused the Great Depression. compelling Question: what was the most significant cause of the Great Depression?

Based on the source’s information, the stock market crash in October 1929 appears as the most significant cause of the Great Depression. Here’s why: • The crash not only wiped out significant amounts of investor wealth overnight but also shattered public confidence in financial institutions and the future of the economy. • This sudden loss of confidence led families and businesses to cut back on spending and investment, which in turn caused a rapid decline in demand for goods and services. • As demand fell, banks faced a surge in loan defaults and bank runs. With banks struggling or even failing, access to credit became limited just when it was needed the most to stimulate recovery. • The resulting contraction in economic activity spiraled into massive unemployment and widespread business failures, setting off the chain reaction that defined the Great Depression. Thus, while multiple factors contributed to the economic collapse, the stock market crash is identified as the pivotal event that triggered a series of cascading failures throughout the banking system and the broader economy.