Great DepressionThe Great Depression was one of the first and worst blows to the global economy. Starting in 1930, the global economy has witnessed an economic collapse. This type of economic failure had never been experienced before and the one that started in the 1930s lasted until 1939 and the scale of the consequences was extreme and harsh for liberal and democratic economies. Most major global economies have been shaken, with total output falling by 25-30%, while unemployment rates have hit record highs, with 25% in the US and UK and 40% in Germany . Stock market crashes, bank failures and much more left governments ineffective and this led the global economy into what we now call the “Great Depression”. As for the cause of the Great Depression, there is no set of problems or causes that led to this economic disaster, but according to various economists and academics, it was a mixed result of the interaction of a complex set of factors; economic, social and political. Below are some factors that led to the Great Depression of 1930-1939: Stock Market Bubble: After the World War I era, Europe and Germany were trying to get back on their feet and it was only the United States that enjoyed victory in the war. Both during and after the war, the U.S. economy grew tremendously as Europe purchased more goods from the United States, and new innovations in technology, automobiles, and appliances were also a boon to the U.S. economy as profits increased, pushing the stock prices and gold reserves rise. Thus, the United States has become the largest credit nation in the world. The United States began to invest through foreign direct investment in Europe and Austria, while at that time American investors believed and invested large sums in stocks. With low margins, they were able to buy more dollar stocks and so the stock market was… half way… the goal of restoring prosperity and also allowed cartels and other antitrust activity to form. as by allowing minimum prices and limiting capacity expansion and with cartel owners' monopoly profits, wages were still above the market trend. However, it was not until the late 1930s that these NIRA policies were replaced with the Taft-Harley Act and thus working hours began to rise. Furthermore, industrial wages had fallen back into line with productivity and market trends and hours worked per capita had returned to their normal level and the depression was finally over by the end of 1939. Works (Ohanian) cited Matziorinis, Kenneth. The causes of the Great Depression: a retrospective. Research report. Montreal: McGill University, 2007. PDF document.Ohanian, Lee E. Why did the Great Depression last so long? 5 January 2009. Web. 12 December 2013.