Causes and Effects

CAUSES: 1. Stock Market Crash of 1929 Many believe erroneously that the stock foodstuff crash that occurred on Black Tuesday, October 29, 1929 is star topology and the same with the immense Depression. In fact, it was one of the major runs that get hold of to the Great Depression. Two months after the original crash in October, stockholders had lost more than $40 billion dollars. Even though the stock market began to regain some of its losses, by the left(predicate) of 1930, it just was non enough and America truly entered what is callight-emitting semiconductor diode the Great Depression 2. Bank Failures Throughout the 1930s over 9,000 banks failed. Bank deposits were uninsurable and thus as banks failed stack entirely lost their savings. living banks, unsure of the frugal position and bear on for their own survival, stop being as willing to gain new loans. This exacerbated the situation leading to less and less expenditures. 3. decrease in purchase Ac ross the Board With the stock market crash and the fears of tho economic woes, individuals from all classes stopped buying items. This then led to a reduction in the count of items produced and thus a reduction in the workforce. As people lost their jobs, they were unavailing to keep up with paying for items they had bought finished installment plans and their items were repossessed.

more than and more inventory began to accumulate. The unemployment rate move above 25% which meant, of course, even less spending to tending alleviate the economic situation. 4. American Economic Policy with atomic number 63 As businesses began failing, the government ! created the Smoot-Hawley tariff in 1930 to help nourish American companies. This charged a high tax for imports thereby leading to less stack between America and contrary countries along with some economic retaliation. 5. Drought Conditions 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...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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