Great Depression Causes

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Causes of The Great Depression in the United States
The Great Depression was a worldwide economic downturn or depression in 1930s. It is believed to have originated in the United Sates of America. In the United States, the causes of The Great Depression have however, remained debatable. Most Historians claim that the stock market crash of 1929 was the major cause of The Great Depression in the United States . on the other hand, Witcher and Horton (2013) claims that poor Monitory policies by the government in the 1920s and legislative restrictions of branch banking together with easy money which, in turn led to malinvestment were the main factors that contributed to the occurrence of The Great Depression . In simple terms, after the election of Warren G. Harding in 1920, his Republican Administration lowered taxes for businesses and reduced government involvement in businesses. These policies together with advancement in technology enabled businesses to boom which in turn increased production tremendously resulting in reduced prices of goods in the late 1920s. Additionally, the Monitory policy encouraged credit expansion when the Federal Reserve encouraged small banks to give large or more loans to farmers who were already no economically stable . To make matters worse, small banks failed since they held less money in hand because a good chunk of the money was in Federal Reserves .
To further investigate the causes of The Great Depression in the United States, some events
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