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Essay On The Causes Of The Great Depression

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The Great Depression was characterized as the worst economic depression, and it was during the time period of the 1930s. This depression was not caused particularly by one factor but a combination of several worldwide and domestic conditions. The major causes of the Great Depression consisted of the stock market crash of 1929, failures in banks, reduction in purchasing products, and the economic policy between America and Europe. The stock market of 1929 was the initial reason that drove us into the Great Depression as after the crash, stock holders started to lose billions of dollars. Many banks started, and at this time, bank deposits were not insured and this led to all the money saved in the bank by people being lost due to the failure of the banks. And, the banks which actually survived stopped creating new loans in fear of failure and not enough money. Due to the crash of the stock market and fright of economic problems, people began to stop purchasing products, which led to the reduction in the workforce and a loss of a lot of jobs due to money problems. The unemployment rate was constantly increasing as many people would decrease the amount of items purchased drastically. Lastly, due to the failure of…show more content…
Social activity engagement with family and friends helped alleviate the melancholy caused by the great depression. Families made food and gave to schools and other activities to make them run smoothly, adults hung out together, children played, and entertainment helped people stop focusing on their problems. The Great Depression transformed America by greatly expanding the role of the government. Americans began to view the national government with a different perspective as the federal government took initiative and helped people deal with the Great Depression with many programs and
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