What event is regarded as the catalyst for the global economic depression of the 1930s?

The stock market crash of 1929 is recognized as the catalyst for the global economic depression of the 1930s because it marked the beginning of a severe downturn in economic activity across the world. The crash led to a sudden loss of confidence in financial markets, which resulted in widespread bank failures, plummeting investment, and a significant reduction in consumer spending. As businesses struggled and unemployment soared, the repercussions of this economic collapse created a chain reaction that affected various sectors and economies, both in the United States and internationally.

This event fundamentally altered economic policies and led governments to rethink their approaches to economic regulation and intervention, ultimately influencing the way economies were managed in subsequent decades. This context solidifies the importance of the stock market crash as a pivotal moment in history that not only triggered the Great Depression but also reshaped global economic structures.