The Main Cause Of The Great Depression

The Great Depression was an economic collapse that began in 1929 and ended in 1938. During the Depression most citizens went through hardship .Three main causes of the Great Depression were the stock market crash of 1929, the Dust Bowl, and Bank failures.

There are some main causes The great depression, first in 1934 per week They made $ 4.80 per week and They paid $ 3 by The incomes of Their Homes, all that happened to Birmingham Alabama in 1934, in Chicago everything rises for The men and The women for the food , And then spent $ 1.10 that was spent on food in stores, The three cases are The three cases were The financial downfall, low wages, and unemployment.

Besides ruining many thousands of individual investors with crash, the decline in the value of assets greatly strained banks and other financial institutions as well. These places made the same big mistake the American people did before the crash, they had too much confidence and was very naive about the current state of the economy. Due to their false confidence in the economy they made an overextension of credit. Particularly the banks that held stocks in their portfolios were affected. Many banks were so confident in the newly rising economy that they irrationally gave out loans to citizens who wanted to invest in stock even when the stock was not 100% secure which became apparent during the Stock Market Crash of 1929 (Nelson). The crash of the banks did not only

Many people lost as much as ten times their initial investment, which shook consumer confidence. In an effort to cover their margins, people rushed the banks in masses, demanding their money. Soon, banks began to run out of cash and went bust.

Banks began to fall apart all across the nation. The banks were one of the first businesses to feel the actual effects of the stock market. This scared millions of people all around the world, and they all began withdrawing their cash as soon as they could. Only a few banks were able to make it through the deposits though. In 1929, around 641 commercial banks failed. In 1930, 1,350 banks failed. And a year after that there was about 1,700 banks went under. Many thought there would be no standing banks within a short period of time.

The Great Depression was a period of history marked by a devastated worldwide economy and the financial struggle of many people. In the United States, several factors contributed to this economic downturn in the 1930s. It all started with the U.S. stock market crash in October of 1929. After years of rising share prices, everything came crashing down on Black Tuesday, October 29, 1929. Following these events, the large number of bank failures and high unemployment rate in the country kept the economy from fully recovering for years to come.

This is because the stock market crashed which rippled the economy. Many banks failed and not less than 3000 collapsed in 1930. As the monetary discouragement extended in the mid 30s, and as agriculturists had less and less cash to spend around the local area, banks started to come up short at disturbing rates. Amid the 20s, there was a normal of 70 banks flopping every year broadly. After the crash amid the initial 10 months of 1930, 744 banks fizzled – 10 fold the number. Taking all things together, 9,000 banks fizzled amid the time of the 30s. It's evaluated that 4,000 banks fizzled amid the one year of 1933 alone. By 1933, investors saw $140 billion vanish through bank disappointments. This caused a great harm to Americans people who lost their money when the banks failed. Others panicked and withdrew there money forcing more banks to

To start, there were several causes of the Great Depression such as overproduction and the uneven distribution of wealth. However the major cause of the depression was the crash of the stock market in 1929. Once the market crashed Americans went into a panic. Millions of dollars worth of stock gone in the matter of seconds.With millions of Americans panicking and worried about their money they took all of their savings out of banks in fear of the banks crashing and losing their money in order to

The Great Depression was a time when the economy in the U.S. plummeted. It occurred between the late 1920s and early 1940s. Many became homeless, jobless and hungry. Therefore, it leads many to wonder how it happened. A number of factors that led to the The Great Depression, the worst economic crisis in the United States, include the collapse of banking systems, reduction in foreign and domestic purchasing, and a major drought known as the Dust Bowl.

The great depression was a horrible time for americans it was one of the most difficult times in the united states.One of the causes that started the great depression was the stock market crash of 1929 it was a major cause because two months after the original crash stockholders had lost more than 40 billion dollars.Even though the stock market begin to gain some of these losses back by the end of 1930 it was not enough and america truly entered the great depression.Another event that caused the great depression was bank failures.In the 1930s over 9,000 banks failed. Bank deposits were uninsured and banks failed people by losing their savings.Banks that survived were unsure of their economical situation and concerned for their survival.

There were many causes of the worst economic state in American history, but two stand out to me as being the biggest causes of the Great Depression. The two causes I chose are buying on margin, and banks failing due to businesses and people not being able to repay their loans. These two causes go hand in hand because one issue ultimately led to another.

Following the crash of the stock market, over 9000 banks failed to stay in business. This caused many fellow Americans to lose their savings they began to refuse to spend their money. In addition, due to businesses not having high value and banks shutting down, companies and industries began to fire their employees.

Many people think that the Great Depression was caused solely by the stock market crash. Anybody who tells you this probably didn’t pass U.S. History in high school. The fact is, the Great Depression was caused many different factors. Four of which were overproduction, uneven distribution of wealth, protective tariffs, and the four “sick industries” of the 1920’s.

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Many say the banks were the main reason for the unraveling events of the Great Depression. Making risky loans that barrowers could not pay back, due to the amount of money going out and not enough coming in. When the economy slowed people went back to the banks to get their money they invested to save for a harsh period like the Great Depression to find out its been drained which forced the banks to begin calling back loans and foreclosing on people. Even after recalling all the loans the bank still was short the cash to reimburse the hundreds who lost their hard-earned cash. Which devastatingly led to many banks failing leaving them to shut their doors.