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The Main Causes Of The Great Depression

Decent Essays
1.The main causes of the Great depression were mainly sparked up in the 1920s. It was not just one thing that caused America’s economy to suffer drastically. In fact, there were multiple causes that contributed to the Great Depression, such the Wall Street crash, Farm overproduction, and finally Reduction in purchasing. FDR was president and enforced New Deals that helped get the U.S out of the Depression.
The Wall Street crash was one of the biggest contributors to the Great Depression. It was when the stock markets crashed on October 24, 1929, banks announced that funds will be available to be sold as stocks. Within 5 days the market will still decreasing and by October 29, 1929, the market fully crashed, and they couldn’t stop the sell-off. Which resulted in the economy losing more than $40 billion. Because prices fell due to the rapidly increasing unemployment and decreasing in production, which left the prices higher than their actual amount which contributed to the downfall.
Another factor that contributed to the Great Depression was the farm overproduction. Throughout the 1929 farm incomes began to drop because of the surpluses and over productions. In 1920 an acre was $69 it continued to drop until $31 in 1930. Agriculture was already in a depression before the Great Depression hit and it lasted until 1939 during the outbreak of WWII. The income for a family in 1929 was around $750 but for farm owners, it was around $273. Agriculture was a big problem due to 30% of
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