Causes Of The Great Depression Essay

The Cause of the Great Depression Essay
The Cause of the Great Depression The economic expansion of the 1920's, with its increased production of goods and high profits, culminated in
immense consumer speculation that collapsed with disastrous results in 1929 causing America's Great Depression. There were a number or
contributing factors to the depression, with the largest and most important one being a general loss of confidence in the American economy. The reason
it escalated was a general misunderstanding of recessions by American policymakers of the time.
The U.S. economy was booming in the 1920's. Stocks prices soared, as they were bought on margin for as little as 10% down. Market speculation is
cyclical–that is, if one stock appears profitable, you buy it,...show more content...
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.
With the economy falling in shambles and companies defaulting on loans, nearly all private and corporate investment ceased. Companies couldn't
afford to expand, and in fact, many had to consolidate in order to cover the margins on their loans. This meant postponing hiring and laying workers
off, which caused unemployment to skyrocket. With people now willing to work for less money, wages lessened too. At the same time prices rose in
an attempt by companies to make some amount of profit off the goods.
Because the governments' prevailing economic theory was based on laissez–faire economics, the government believed that recessions were
self–correcting. Eventually unemployment and inflation stopped declining, but not before the U.S. lost 1/3 of it's output and 25% of the workforce
was unemployed.
In the end, it was World War II that brought us out of the Great Depression. With war at hand, the government began pumping massive amounts of
money into the economy. Production and inflation increased. More jobs were available and wages rose. At the
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Essay On The Causes Of The Great Depression
The Great Depression was characterized as the worst economic depression, and it was during the time period of the 1930s. This depression was not
caused particularly by one factor but a combination of several worldwide and domestic conditions. The major causes of the Great Depression consisted
of the stock market crash of 1929, failures in banks, reduction in purchasing products, and the economic policy between America and Europe. The stock
market of 1929 was the initial reason that drove us into the Great Depression as after the crash, stock holders started to lose billions of dollars. Many
banks started, and at this time, bank deposits were not insured and this led to all the money saved in the bank by people being lost due to the failure
of the banks. And, the banks which actually survived stopped creating new loans in fear of failure and not enough money. Due to the crash of the
stock market and fright of economic problems, people began to stop purchasing products, which led to the reduction in the workforce and a loss of a
lot of jobs due to money problems. The unemployment rate was constantly increasing as many people would decrease the amount of items purchased
drastically. Lastly, due to the failure of...show more content...
Social activity engagement with family and friends helped alleviate the melancholy caused by the great depression. Families made food and gave to
schools and other activities to make them run smoothly, adults hung out together, children played, and entertainment helped people stop focusing on
their problems. The Great Depression transformed America by greatly expanding the role of the government. Americans began to view the national
government with a different perspective as the federal government took initiative and helped people deal with the Great Depression with many
programs and

What Are The Causes Of The Great Depression
In the 1930's the great depression started when the stock market stopped a lot of people soon became in debt and also jobless, later the dust bowl
caused a lot of people from the midwest and migrate to california to find jobs.The Dust bowl destroyed all the crops in the midwest and also took
all the great soil out of land, and killing the animals because of the dust in the air, making the land in the midwest look like a desert. Farmers were
devastated so the farmers who had no land and no crops had to migrate to California to find jobs to get money for their families to live. The great
depression and the dust bowl were both big problems in america, the great depression caused people to lose jobs and the dust bowl caused farmers to
lose their farms and those were the causes that people had to migrate to california. In Seattle people had to live in shacks that were made by old boxes
and boards because of the great depression people didn't have money pay for their homes and for food so all people were also hungry. In a part of
Seattle which was named "Hooverville" named after the president that tried to fix the problem also who was blamed for the great depression....show
more content...
The migrant farmers which were called okies were looked upon with scorn by the farmers from California and also by the native people. 1929
Dairy farmers had sold dairy products and also had a argument over the low cost of milk and bread. Farmers would work hard on making dairy
products and grow corn and oats, but the farmers didn't earn enough money because the price of the products were so

Causes Of The Great Depression Essay
Between the late 1890's, after the panic of 1893, and the late 1920's, the American people led good lives in which most prospered. In the 1920's the
problems that led to the Great Depression were dispersed over a time of maldistribution of wealth, and what was called a bull market. A bull market
is a stock market that is based on speculation. Speculation was a system of borrowing money to buy stocks and selling for a profit. Speculation only
worked if the stock market was on the rise though. To this day people who have not been properly educated about the GreatDepression believe that
President Hoover was the cause. The idea that President Herbert Hoover caused the Depression could have arisen from the fact that he was the
President at the...show more content...
The national income rose from $74.3 billion to $89 billion (Gusmorino, Main Causes of the Great Depression). The whole American population did
not live through the benefits of the "Coolidge Prosperity." For example McElvaine, in his research on the Great Depression, stated, "in 1929 the top
0.1% of the population had an income equivalent to the bottom 42% of the population," (McElvaine, Causes of Depression). That same top 0.1% of
the population in 1929 had 34% of all the savings, while 80% of the population had no savings at all. A good example of this maldistribution of
wealth can be seen with Henry Ford. In 1929, Ford reported an income of fourteen million dollars, while the average income of the American people
was seven hundred and fifty dollars annually (McElvaine, Causes of Depression). If one were to calculate these numbers by present daily standards,
with the average income at eighteen thousand dollars, Henry Ford would be making an astonishing three hundred and forty five million dollars.
However, one should be reminded that Ford was not the only man in America making this amount of money, there were many people just like Ford
around the Nation. Comparing the 1920's to today, one could say that such businessmen are like the Internet CEO's today. With such a growing gap in
the income of the people, it was without surprise that such a catastrophic event could occur. The Federal

Causes of the Great Depression Essay
Causes of the Great Depression Throughout the 1920's, new industries and new methods of production led to prosperity in America. America was able
to use its great supply of raw materials to produce steel, chemicals, glass, and machinery that became the foundation of an enormous boom in consumer
goods (Samuelson, 2). Many US citizens invested on the stock market, speculating to make a quick profit. This great prosperity ended in October 1929.
People began to fear that the boom was going to end, the stock market crashed, the economy collapsed and the United States entered a long depression.
The Great Depression of the thirties remains the most important economic event in American history. It caused enormous hardship for tens of...show
more content...
On average, people's wages stayed the same even as prices for these goods soared. The factories and farms still continued to produce at the same
rate, but demand for their products was decreasing. As a result, more and more workers became unemployed, until 25% of the population was out
of work. The American Federation of Labor fell from 5.1 million in 1920 to 3.4 million in 1929 (Temin, 68). All of these groups, being poorer than
the rest of the country, could not afford to participate in the boom of the 1920's. There was a major unequal distribution of income that led to the
richest 1% of Americans owning approximately 40% of the country's wealth (Matthews, 2). The country entered the 1920's with Warren G. Harding as
president. Harding was a Republican as well as a laissez–faire capitalist who advocated policies which reduced taxes and regulation, allowed
monopolies to form, and allowed the inequality of wealth and income to reach record levels (Tanner, 3). Harding died in 1923 and Calvin Coolidge
continued Harding's policies of minimal government intervention in the economy and in business. Under Coolidge, the stock market began its
"artificial" five year rise, the top tax rate was lowered to 25%, and the Supreme Court made an important ruling which further limited government
control over monopolies (Tanner, 8). In the 1920's more people invested in the stock market than ever before.

Great Depression Causes
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

Essay On The Causes Of The Great Depression
There are numerous causes for the Great Depression, but with intensive research we have narrowed it down to a few specific origins. Some of the
contributing factors to the Great Depression included the stock market crash, banks failing, poor education about money, agricultural problems, and
President Hoover having a "do little" attitude. Almost overnight the United States went from a bustling "Roaring Twenties" to a dreary depression. The
Stock Crash of 1929 was the biggest event to kick off the depression. The money not only disappeared overnight, but the people lost their money and
became poor. Many Americans wanted to "get rich quick" and put their money into businesses or into money schemes. When thestock market crashed
their money was gone. The people lost all their money over night and had no money to put into the banks. Because of this, both the banks and the
people suffered greatly. Americans became broke and lost their jobs because of no money circulating. The trust with banks became very low and
"said" money was not actually there for use. Not knowing how to use credit and the long term effects also took money away from banks. Years prior
...show more content...
Many lost money and therefore the trade of food went down also. Since no one had money to put back into the economy, everyone became broke. For
any economy to be successful, it at least needs the people living in the country to spend some of their money to circle back into the country. Since
people weren't spending money during this time, businesses started closing. This resulted in an unbelieveable amount of unemployment. In 1933
unemployment rose from 3.2 percent to 25 percent. Since no one had money to spend, trade of many other products also declined and stopped bringing
money to the U.S. Europe was one major trading partner that started to pull

The Great Depression remains to be the worst economic slump ever in American history and one which spread practically all over the industrialized
world. The Depression bombarded in late 1929 and lasted nearly a decade. Many factors elemented the depth of the widespread prosperity. However,
combined, the greatly unequal distribution of wealth throughout the 1920's and the extensive stock market speculation that took place during the latter
part that same decade remain the key of all elements. The distribution of wealth in the 1920's was disparate and largely dispersed where funds were
randomly needed. Between the rich and the middle–class, between industry and agriculture within the United States, and between the U.S. and Europe
were...show more content...
A 1932 article in Current History articulates the problems of this maldistribution of wealth:
We still pray to be given each day our daily bread. Yet there is too much bread, too much wheat and corn, meat and oil and almost every other
commodity required by man for his subsistence and material happiness. We are not able to purchase the abundance that modern methods of
agriculture, mining and manufacturing make available in such bountiful quantities. Three quarters of the U.S. population would spend essentially all
of their yearly incomes to purchase consumer goods such as food, clothes, radios, and cars. These were the poor and middle class: families with
incomes around, or usually less than, $2,500 a year. The bottom three quarters of the population had a total income of less than 45% of the combined
national income; the top 25% of the population took in more than 55% of the national income. While the wealthy too purchased consumer goods, a
family earning $100,000 could not be expected to eat 40 times more than a family that only earned $2,500 a year, or buy 40 cars, 40 radios, or 40
houses.
Through such a period of imbalance, the U.S. relied mainly upon two things in order for the economy to remain on an even keel: credit sales and
luxury spending and investment from the rich. One obvious solution to the problem of the vast majority of the

Great Depression Cause And Effect Essay
The major cause for the Great Depression was the fact that Americans began to buy goods on credit and that some bought stocks on margin. During the
Roaring Twenties, various new products, such as vacuum cleaners, electric irons, fans, cars, radios, and others, began to be manufactured and
introduced into the market. By 1923, there were over 500 radio stations that existed in the United States and there were over twelve million radios that
were in American homes. Since these new products were expensive, a large portion of Americans bought them on installment plans or lines of credit.
After years of overspending, these debts were unable to be paid back. This led to a crisis, since the banks that issued the loans took the money from
the savings accounts of customers at the bank. Thus, their money was lost. When patrons of the bank were unable to recover their money, it caused a
panic. This led to a rift between individuals...show more content...
This means that people took out loans to invest in the stock market and when those stocks did not perform, they were unable to pay back the debts.
A major factor in this type of underperformance was the way that the stock market was overvalued. Between 1925 and 1929, the value of the New
York Stock Exchange rose from 27 billion dollars to 87 billion dollars. After it was apparent that the prices were heavily over inflated, it caused the
value of the market to drop. Moreover, the interest on the loans for margin investing were high, in some cases as high as 20% which also made them
difficult to pay back. As mentioned before with installment plans, the banks took money out of the savings accounts of those who put money in the
bank to issue the loans for these investments and they were unable to come up with the funds from the savings accounts. This also contributed to the
rift between the banks and those who put money into the

Causes Of The Great Depression Essay
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. The most important cause of
the Great Depression is the maldistribution of wealth. The reason for choosing this, as the most important cause because it is mentioned in the Brinkley
The reason I chose this as my second cause of the Great Depression is because these markets control both the flow of money and the rates that
money can be borrowed at. The credit market was in trouble according to Brinkley because large banks had been making bad loans and small
banks were having customers default on their loans. The debt structure at the time was also in shambles according to Brinkley as American banks
held large European debts that stemmed from World War One, which also left the economies of the European nations involved in pieces. With these
nations' economies not being strong enough to off their debts the allied nations made Austria and Germany pay reparations to them for the damage
caused by the war. However this plan failed because both the German and Austrian economies were also in trouble as well and couldn't pay the
reparations they owed. So once the plan failed Brinkley says "American banks began making large loans to European governments with which they
paid off their earlier loans." (Brinkley). With large amounts of money being tied up in European debt and consumers defaulting on their loans it isn't
hard to see how the flow of cash decreased to low levels, causing the demand for goods to drop not just in Europe but also around the

Many people speculate that the stock market crash of 1929 was the main cause of The Great Depression. In fact, The Great Depression was caused
by a series of factors, and the effects of the depression were felt for many years after the stock market crash of 1929. By looking at the stock market
crash of 1929, bank failures, reduction of purchasing, American economic policy with Europe, and drought conditions, it becomes apparent that The
Great Depression was caused by more than just the stock market crash. The effects were detrimental beyond the financial crisis experienced during this
time period. The first and most obvious known factor in the development of The Great Depression is the stock market crash of 1929. The Money Alert
website...show more content...
The banking industry as a whole after the stock market crashed was going bankrupt due to not being able to carry the "bad debt" that was created
from using customer money to buy stock. Because the banks were out of money, they were unable to cover customer withdrawals from their bank,
causing many bank customers to lose all of their savings. With the uncertainty of the future of the banking industry, many people withdrew all of their
savings, which caused more than 9,000 banks to close their doors and go out of business (Kelly). Due to the effects of the Great Depression, and the
collapse of the banking industry, the government created regulations to prevent similar failure in the future. For Example, the SEC, (or Securities
Exchange Commission), which regulates the sell and trade of stocks, bonds and other investments was created as a result of The Great Depression.
The FDIC (or Federal Deposit Insurance Corporation), was created to insure bank accounts so that that the consumer would be protected if the bank
were to go out of business (Kelly). The Great Depression's effect on the banking industry led to many useful changes to the banking industry and helped
restore confidence in banks in the American people. The next major factor that contributed to the Great Depression was the reduction of goods being
purchased during the time period. After the stock market crashed, consumers from

The Great Depression to place in the 1930's, wreaking havoc on America's economy. It cause unemployment, poverty, homelessness, and a loss of a
lot of money, including people's life savings. Many things lead up to it, but one of the main ones was the stock market crash. People believed that
the stock market was as stable as could be, but it was very inflated and it crashed. People invested a lot of their savings into stocks as what was
considered a smart move, yet as corporations reached their limit, everyone pulled their money which caused it to crash. The release of "one–time buy"
products also lead to the crash, because people would buy new products you only needed one of, and once everyone had them, companies didn't sell as
much, therefore making less money, therefore forced to cut costs, which meant laying people off. This is what lead to the high unemployment rates.
People blamed this depression on the president at the time, Herbert Hoover. They ridiculed him, by calling shanty shacks hoovervilles and leaving their
empty pockets inside out, calling them hoover flags. The public was more than happy when Franklin D. Roosevelt came into office. All that American
denizens wanted was to make it out of the hard times, make changes in the government, and get help from them. Unlike Herbert Hoover, FDR took a
more hands on approach, giving direct aid to the public. Hoover believed in rugged individualism, expecting that people should be able to work
together and get through

Essay on The Causes of the Great Depression
The Causes of The Great Depression History Imagine waking up one morning, only to find out that all your investments and savings are gone. So
if your bank that you invested all your money in collapsed, you didn't get any money back. This is what happened to millions of Americans during
the 1930s. This era was called the great depression. The great depression was one of the worst economy issues we have ever had in history. It was a
hard time for everyone. The great depression started in 1929 till 1939. Tons of banks closed down and about 9 million savings accounts were lost.
Tons of companies and factories went under. About 15 million people were unemployed. There are many causes of the great depression. One main
cause was the...show more content...
It got so bad due to a misunderstanding of a slump by American policymakers. This became a problem. In the 1920's the U.S. economy was
booming. The value of stocks were rising and being bought. People were buying tons of stocks. They put as little as ten percent in. Then
everything started tumbling down and people lost about ten times as much as they put in. Tons of people saw the stocks falling, literally. People
were trying to hurry and get rid of their stocks they bought to try and save some of their money. When more and more people were getting rid of
their stocks it just made the situation worst. J.P. Morgan tried to save the economy by putting billions of dollars in certain banks. This became the
stock market crash. This day, October 24, 1929, became known as Black Tuesday. In the crash, people lost ten times as much as they put in. After all
that everyone lost there trust in the economy. Many people wanted to take their money out of the bank. Banks were running out of money. Because
of the cash shortage many banks got closed down. Now all the companies are having troubles. With the economy falling companies couldn't pay their
loans off. Many companies had to combine together in order to cover their loans. Companies stopped hiring people and began to lay off people.
Because nobody could afford to hire anyone the unemployment rate got extremely high. Prices also rose by companies to try and make some profit off
the

Great Depression Causes And Effects Essay
The Great Depression originated in the US, lasting from 1929 to 1939. The most probable cause for the depression was the Stock Market Crash of
1929, which wiped out millions of investers. Due to millionaires pouring their own savings into stocks, the markets reached their peak. To add to this,
the wages were low, consumer debt increased, banks had so many loans that they couldn't get rid of them, and factory production slowed, while stocks
rose and rose. It came to the point where investors began selling shares in groups and most became worthless. Consumers were now less confident in
businesses and banks. Suddenly, the markets crashed and 13 million people became unemployed, many lost their savings account, homes, and
organizations were made...show more content...
This didn't last long as Germany's attacks at sea, causing hundreds of Americans to die, caused the US to join the war. Although WWI was one of
the most gruesome wars, there still came positive outcomes. WWI began by the assasination of Archduke Franz Ferdinand fromAustria Hungary,
by Serbia. WWI changed the face of America forever. While men left for war, women took their jobs, the first time they've left their domestic work
and have worked in a factory ( a man's job ). They also had the opportunity to go over seas and help the wounded . Due to needing vasts amount of
supplies for war, production and effiency in industries grew, technology advanced, and the economy boomed. Industries began to receive an increase in
profits, causing inflations to become high, increasing the cost of living by nearly 15% more than average. The Great Migration of 300,000–500,000 of
African Americans from the South of the US to the North , caused a massive influx of people into cities, leading to squalid conditions, even more so,
when the soldiers came back from the war, it created even more intolerance towards immigrants and African

What Caused The Great Depression Essay
Imagine a society where over 25% of the population was unemployed. That is what it reached during The Great Depression ("The Great Depression").
During the depression unemployment rates were the highest they have ever been. It is highly speculated to this day on what exactly caused The Great
Depression. Most historians agree it was a chain of events, one after another, that brought our country into chaos. Some events were more impactful
than others. These events caused pandemonium among the public, which blew it even more out of proportion by trying to save themselves from
bankruptcy. The three major events that caused The Great Depression were the Stock Market Crash of 1929, the bank crisis, and public overreaction.
Although...show more content...
This event created a domino effect that helped lead to The Great Depression. The second major event in this chain was the banking crisis. Before The
Great Depression hit, our countries banking system was characterized by having numerous small to medium sized firms, which meant they were prone
to going bankrupt. As I previously stated, banks had been extremely over–generous with handing out loans. A good percent of these loans was invested
into the stock market and lost when it crashed. Some banks even invested depositors' money themselves into the stock market. The investors were
unable to pay back the money to the banks and banks started going under. Bank policies during this time were very poor. They did not have
guarantees to their customers that if the bank failed, they would be reimbursed for the deposits like we have nowadays. This caused depositors to
rush and withdraw their money, and banks were forced out of business because they didn't have all the money. By the inauguration of Franklin D.
Roosevelt in 1933, the banking system had practically ceased to function. Checks were unable to be trusted because nobody knew if they were
worthless or sound (Ganzel). All this pandemonium with the banking system caused the public to panic and make it worse. The public contributed to
starting The Great Depression in many ways. They affected the stock market by being too quick to panic–sell their stocks. Since in this time stocks only

In the 1920s, American economy had a great time. The vast majority of Americans in 1929 foresaw a continuation of the dizzying economic growth
that had taken place in most of the decade. However, the prices of stock crested in early September of 1929. The price of stock fell gradually during
most of September and early October. On "Black Tuesday" 29 October 1929, thestock market fell by forty points. After that, a historically great and
long economic depression started and lasted until the start of the Second World War. The three causes of theGreat Depression are installment buying,
uneven distribution of wealth and the irrational behavior in the stock market. Installment buying serves as the first cause of the Great Depression. In
When demand leveled off, factory owners had to cut back production and their workforce. Layoff began in some industries like automobile industry as
early as 1928, making ordinary citizens unemployed. As unemployment increased quickly and vastly, a great depression seemed imminent. Uneven
distribution of wealth serves as another cause of the Great Depression. America was wealthy in the 1920s, but this wealth did not extend to all
segment of the society. The gains made by wealthy Americans in the 1920s far outstripped gained made by the working class. By the time of the stock
market crash, the upper one percent of the population controlled over sixty percent of the nation's savings. On the other hand, over three quarters of
American families made less than $3000 a year. Problems that could develop from this situation were obvious. The bottom–line three–quarters of
families were too poor to purchase much to help the economics to flourish. Underconsumption, in the long run, was a vicious circle to the economy.
People had no money to spend. The income of many firms dwindled. More people were laid off or cut hours and thus further cut their spending. The
economics became stagnant. The irrational behavior in the stock market also precipitated the depression. There were cases in the late 1920s of
ordinary citizens becoming very wealthy by purchasing stock. Some of these people were engaged in speculation, meaning

What Caused The Great Depression Essay
Causes of the Great Depression
By: Hamzah Abouseta
The great depression during the 1930's was a social and economic shock that left millions of people unemployed, hungry and often homeless,
specifically in Canada and the United States. There are many reasons that have caused this tragedy such as the stock market crash, bank failures, and the
reduction of purchasing across the board.
The stock market crash was the main cause of the great depression in the 1930's. Many people have been investing in the stock market at this time
because it seemed as if the stock market would just keep going up forever. People and investors were so desperate to buy stocks that they even
purchased stocks on margin, which is the borrowing money from a broker in...show more content...
Even though the stock market began to regain some of its losses, by the end of 1930, it just was not enough and America truly entered what is
called the Great Depression (Harold, 1992). Moreover, another cause of the great depression which was also a huge cause of the great depression
was bank failures. Many banks had invested the people's deposits in the stock market, causing these banks to lose their depositors savings as stocks
plunged. Now the entire country was in despair as all the cash that have been put in banks and stocks have just vanished, from filthy rich to dirt poor.
Furthermore, the reduction in purchasing Across the Board was another cause of the great depression. Before the stock market crash, companies were
making too much of certain products such as cars and washing machines. Also there was already too much investment in industry, but not enough
investment in wages. Factories started to produce more than people could afford to buy. After the stock market crash and the fears of further economic
woes, individuals from all classes stopped purchasing items. This then led to a reduction in the number of items produced and thus a reduction in the
workforce. As people

The Cause Of The Great Depression
In the summer of 1929 the American economy started a downward spiral into what would later be known as the Great Depression. Consumers ceased
to purchase unnecessary items and unsold products began to stockpile in manufacturer's warehouses. 6This slowed manufacturing and production.
5Although the companies did not have an increase in value, their stock prices continued to rise. 3Finally, in October of that same year, thestock market
crashed. Investors panicked and suddenly flooded the market with their shares. Black Thursday and Black Tuesday, the two most notable days of stock
sales, are known for when approximately 29 million shares were sold. Following that, consumers lost confidence and hesitated to spend their disposable
cash which

Primary Cause Of The Great Depression
Great Depression Lecture Questions.
1. What was the primary cause of the Great Depression?
The Great Depression was caused by a few factors but the major reason behind it was the financial markets then was not based on realities of the
economy. The model used did not show any implications of correlation of company health to the price of stock.
The speculation of the market trend was also unregulated since most stocks were purchased on margin and corruption was also at highest since the
market was rigged by Wall Street officials.
Another major cause behind this was the fact that commercial banks and institutions had invested their customer savings in the stock market which
resulted in millions of people losing their life's savings.
2....show more content...
This also compelled the US to exercise non–entanglement in international politics
As a result, there was The Japanese invasion of Manchuria and also, the push of gaining total control over expanses of Northeast China in
1931.Resulting from this, United States expressed concern over the aggressive action without committing itself to any direct involvement or
intervention. There were also other conflicts arising from this such as the Italian invasion of Ethiopia and the Spanish Civil War.
2. Why did the United States assist Great Britain and the Soviet Union in their struggle against the Axis powers before the attack on Pearl Harbor?
The Alliance between Japan, Germany, and Italy gripped Europe with fear Roosevelt's back wanted US aid providing a response toward Hitler and
Mussolini and also in 1936, Germany rearmed the Rhineland– a 50–kilometer strip of land, this would make it easier for the French to invade Germany.
The US was primarily concerned with colonies of France and the Netherlands, which were left unprotected by the War in Europe.

Causes Of The Great Depression Essay

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Causes Of The Great Depression Essay