The Great Depression was the longest-lasting economic downturn in the history of the US. There are a lot of different options on what lead to the Great Depression since there were a lot of factors involved. One theory was that a a severe shortage of diversification in the American economy caused it. During the 1920s automobiles and construction, which began to decrease. Then in 1929 automobile sales began to decrease drastically more than a third in the first nine months. Prosperity relied on some general industries, for example the auto industry. This really took a toll. New industries began to develop but there wasn't much that could be done to reverse the damage.
The credit economy was not doing well. Farmers were swamped in debt and as the crop prices dropped as low as
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The demand for goods from England was decreasing in the 1920s. The European industrial and agricultural economies were trying to be more productive and self reliant. Other European countries simply count afford to buy goods from America. The European economy was harmed severely by debt after WWI.European nations that were allied with America during the war owed a lot of money to the American banks. They hard a tremendously hard time paying this debt. This only added to American's depression. American's government decided to start making large loans to European governments and this was used to pay off the earlier loans. This makes absolutely no sense. They only added on to the debt that was already there. By now the Depression was becoming an international affair.
Everything I have talked about in this had a major impact leading up and during the Great Depression. The Great Depression not only affected the US but it was a global disaster. Most people think that the one great cause was the stock market crash. The stock market crashed because of what was already happening. Credit, debt, loans, these all had a huge
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.
The Great Depression started in 1929 and lasted up until 1939. It happens to be the worst economic downturn for the United States and the the rest of the world. It caused companies and corporations to eventually go bankrupt as well as workers to be laid off. Another effect of The Great Depression is that factory production was reduced, and the banks started to shut down. In the lowest point of The Great Depression in 1933 nearly 15 million workers in America were unemployed and one half of the banks started shutting down.
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.
The great Depression was a major crash in the history of the United States. The crash of the stock market in October 1929 was the significant cause of the great depression. People began to panic and big businesses were not able to handle the outcome. As a result, many companies dismissed workers, which left the workers with no money. People halted to purchase goods and businesses were running in loss. Furthermore, after the world war one, many European nations owed huge amount of money to the United States. The economy of these nations was shattered and had no way of paying back the
Before the depression happened many factories and farms alike, were producing mass amounts of cheap goods/produce, more than people could buy. This led to product prices falling, due
Farmers also became unemployed. The clients would not buy from him because either the prices were too high due to there being not as much crops or due to there being no crops at all because of the money needed to plant. The farmers usually lived in the plains due to more to harvest crops. There was a problem though. The weather was usually not as good. There were droughts and windstorms and severe weather conditions, That did not cooperate with the great depression either. Both put together
The great depression was one of the most economical disasters in the history of the United States. There were many causes of the great depression, including the stock market crash, dust storms, bank failures, over production and America’s policy with Europe. “While not a direct cause of the Great Depression, the drought that occurred in the Mississippi Valley in 1930 was of such proportions that many could not even pay their taxes or other debts and had to sell their farms for no profit to themselves. The area was nicknamed ‘The Dust Bowl’.” (https:// www.thoughtco.com).
The Great Depression was a dreadful worldwide economic depression that occurred in the 1930s and it was the most profound and longest depression in the American History, which lasted from 1929-1939. Although the Great Depression began soon after the crash of the stock market in October 1929, it is too straightforward to say that that was the major cause of the Great Depression. This crash did not by itself cause the Great Depression. Even before the year 1929, signs of economic trouble had become evident. (Give Me Liberty! An American History, 5TH Edition, Eric Foner, Pg 811).
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 a huge economic downfall in North America and involved many other industrialized countries of the world. The Depression began in 1929 and lasted for about ten years. Millions of people lost their jobs along with many businesses going bankrupt. The common misconception of the Great Depression is people think that the stock market crash was the main cause for it. There were many causes for the Depression; unequal distribution of money during the 1920’s was the main cause of the Depression. This unequal distribution happened on many different classes of people. The imbalance of money is what created such an unstable economy. The stock market was doing much worse than people thought
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.
The Great Depression occurred mainly because of the stock market crash of 1929. It lasted from 1929-1939, a total of ten years (Amadeo). This affected almost everyone who lived in the United States at this time, even if you lived in a small town. People lost their jobs, their homes, and their money (Flannery). Many
Causes of the Great Depression The greatest financial crisis to have occurred in history was not caused by just one event, but rather by multiple events, though some contributed to the crisis more than others. The first cause of the Great Depression was the maldistribution of wealth that occurred among the population. The second most important cause of the Great Depression was the instability of the structures of both the credit and debt markets. The last main cause of the Great Depression was the shrinking demand for American produced goods from European nations.
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