What Are The Causes Of The Great Depression

There are many things that factor in as causing The Great Depression. I believe the biggest factors to be money and confidence. Even though by year end of 1930 the stock market had recouped some of the money lost in the previous years’ loss with the devastating Black Tuesday. The US and the rest of the world would continue to feel the devastating effects of banks failing, high unemployment rates, reduced trade and purchasing of over produced goods, and a negative impact to agricultural. This would not only put a dent in the people’s confidence with the stock market and banks but also government would need to step up in a big way to get things somewhat back on track.

The Great Depression was caused by the stock market crash in 1929. The Great Depression was very sad time for Americans, who faced many adversities which ultimately changed the way they lived. During this period of time unemployment rose to nearly 25% of the population, those who did not lost their job saw a dramatic decrease in their pay.

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.

This eventually affected big companies, which led in decrease in production and fired many employees. The unemployment rose higher than twenty five percent, which meant less money to hover up this economic situation.

To begin with, the first cause of the Great Depression was the bank failures during that time. Prior to the Stock Market Crash of 1929, banks were renting out money to consumers without doing any kind of speculations. The people who rented the money would then go on and invest that money into the stock market not knowing it was going to crash. Once the market crashed, banks were dealt with a huge deficit

As people became unemployed, the economy suffered because these workers were unable to purchase things. For example, Document 4 shows that at the beginning of 1933, the US employment percentage was above a quarter of the population, and from 1931 to 1940 the unemployment percentage was in the double digits. These large unemployment percentages had a devastating effect on companies who were trying to sell their products to consumers who are always a major driver of the economy. High unemployment along with the stock market crash were a few of the main causes of the Great

The causes of the Great Depression in the early 20th century is a matter of active debate between economists. Although the popular belief is that the main cause was the crashing Stock Market in 1929 caused the Great Depression, There were other major economic events that contributed just as much as the crash, such as American’s overextension of credit, an unequal distribution of wealth, over production of goods, and a severe drop in business revenue. As these events transpired the state of economic crisis in the US began to skyrocket.

Not only that, but those who were working industrial jobs either got fired or had their wages cut. This brought about a mass of unemployment, and made those who were poor even more so. Those who were rich and had a job though, just got even more rich by the minute. Document E shows a chart that outlays the unemployment percentages of farmers and industrial workers. Farmers had a high rate of unemployment, but not as high as that of industrial

The cause of the Great Depression was not caused by one problem alone, but several joint problems. The Great Depression was caused by a large percentage of Americans investing in the stock market, installment buying and the multiple bank failures. At President Calvin Coolidge’s last Annual Message to Congress in 1928 he ended his opening paragraph with “The country can regard the present with satisfaction and anticipate the future with optimism.” (Document B) Unbeknownst to him and the American people, just a year later the United States would start a decade long depression. The Great Depression started off with the stock market crash on October 29, 1929.

One big question of the great depression is what where the causes of it? Firstly banks invested in the stock market. You’re probably asking “what’s wrong with that?” well the bank loaned money to people investing in the stock market . The money that the bank loaned to people was essentially money from other people whose money was in the bank . The federal government increased the making of money in the 1920s because the economy

The Great Depression was the result of life during the Roaring Twenties. People heavily valued materialism and hedonism which in-turn made many people try to find a way to gain a large amount of money in a short period of time. As more and more people were intoxicated with greed and selfishness, they became more careless through their actions and made many mistakes. These mistakes led to the

The great depression was caused by 4 main things. The lack of economic diversity was not having lots of money. Another was unequal wealth distribution which was either you were super rich or super poor. The banking system was unstable which meant loans were not being paid which means banks start charging interest. Lastly the international credit and trade issues was not being able to trade with other countries for resources.

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.

Total unemployment rose from just over three percent in 1929 to just over twenty five percent in 1933, and did not increase back up to just over seventeen percent in 1939. By 1933 wages had fallen in every industry, with construction being affected the worst, where wages had dropped by half. Wages in 1933 were twenty five percent lower than in 1929. These decreases in wages caused decreases in purchasing across the board. Durable and nondurable sales alike decreased. Nondurable goods fell by forty one percent, where durable goods suffered the most and declined by sixty two percent. In the midst of the depression farmers also had a difficult time where usually they would have been able to survive. Unfortunately, the Great Plains were hit hard with both a drought and dust storms. The dust storms destroyed everything in their paths, leaving farmers without their crops. Small farmers were hit the hardest. Even before the dust storms hit, the invention of the tractor drastically cut the need for manpower on farms. The small farms were usually already in debt, borrowing money for seed and paying it back when their crops came in. When the dust storms damaged the crops, not only could the small farmer not feed himself or his family, he could not pay back his debt. Banks would foreclose on the farms and the farmer and his family would be both homeless and unemployed. Millions of people were out of work across the United States. Many people hit the road

There are various factors that led to the Great Depression. To begin, the lack of bank regulation was a big factor. The Federal Reserve Act which made banks have money on reserve, was not enforced. Another big factor was easy credit, Easy credit made it easy for people to get money out the bank without having the money to pay it back. Furthermore, the reduction in purchasing across the board can easily be said to be another key factor. With the stock market being down many people within every social class stop purchasing items. Which would cause a decreased not only the number of items being purchased but also the loss of people jobs. Many people had thing on layaway, so usually they would just pay for it monthly. However once they lost their