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Main Causes Of The Great Depression

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What were the main causes of the Great Depression?

The Great Depression, which began in 1929, was a financial crisis that had a seriously negative impact on the whole of the western world. Although it is agreed by most historians that the crisis began in 1929 with the Wall Street Crash, it was not until the 1930s that the crisis took its toll on the majority of the countries involved. This period would last until 1941, when the United States began preparations to enter the Second World War. Many people believe that the main cause of the Depression was the Wall Street Crash however this is far from the truth. The Great Depression occurred shortly after the Wall Street Crash however there were numerous causes that I will briefly introduce …show more content…

This was a concern in both the industrial industry as well as in the agricultural industry. Farmers had been producing more food than the public was consuming since the First World War resulting in the farmers becoming debt-ridden by the mid-1920s. Land prices for farmers plummeted by 40% which led to high levels of unemployment across America by 1929. However, despite the fact that agriculture was struggling in America, industry was soaring in the years leading up to the Great Depression. In the so-called ‘boom’ period before the bust many people bought luxury products, such as cars, on credit. However, the demand for these goods and services soon stopped as people didn’t see the need to constantly update by buying the newest product meaning the factory workers couldn’t afford their own products. The following economic crisis would prevent trading of products with the European countries on the other side of the Atlantic leading to unsustainable …show more content…

This is a system of currency in which money is fixed against an actual amount of gold. This meant that countries, in order to make it work, had to adapt by maintaining high interest rates so that they would be able to attract international investors who bought these foreign products with gold. However, when this stopped in the 1930s the government had to scrap this system in order to prevent the situation from worsening. It was essential for all countries to make this decision however America’s failure to do this meaning that this delay heightened the severity of the crisis and increased the size and increased its threat in terms of size and

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Overproduction and a faulty banking system were two of many factors that led to the Great Depression. The Smoot-Hawley Tariff also served to deteriorate conditions. Although several would argue about the causes of the Great Depression, one thing is for sure: this economic crisis was the most important economic depression of the twentieth century, which was accompanied by significant deflation and an explosion of unemployment and pushed the authorities to a deep reform of the financial

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Following the end of the First World War, the United States was initially prosperous. In 1929, that prosperous age about-faced into a downward spiral that enveloped the entire country. What was eventually called the Great Depression was essentially caused by four major events. At the start, the stock market was strong and thriving and the population was willing to invest in it. Americans were so confident in the market, in fact, that it was common for them to take out loans to fund their investments.

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The crash of the stock market on October 29 1929 was one of the main causes of the Great Depression. Black Tuesday brought to an end the roaring twenties and its wealthy people with their successful plans to become millionaires. The Great Depression was one of the deepest long-lasting economic downturn in the western history. Economists have the theory that the Great Depression was caused because of the Law of supply and Demand miscalculation, Say’s Law misinterpretation and the business cycle not being a cycle but more like a roller coaster. Therefore the Great Depression was caused by people not being able to interpret how economics work.

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The Great Depression was a severe worldwide economic depression that took place during the 1930s. The article by Edwin Gay and pictures compiled by Cary Nelson are both descriptions of how the Great Depression was and the several impacts that it had on the American economy. The range of the great depression is unprecedentedly wide according to Edwin Gay. The great depression was believed to have started from the collapse of the US stock market in 1929. This was shown in a picture as compiled by Cary Nelson

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Imagine it's October 28, 1929, living a lavish lifestyle, owning a mansion, sailing on a 100 foot yacht every weekend, and having what seems like unlimited money that can be spent on anything at anytime. Then, all of a sudden, October 29, 1929 comes. The stock market crashes, banks are closing everywhere, and personal possessions are being foreclosed upon. The greatest economic downfall in the history of the United States has just began. This would become known as the Great Depression, which suited the time period between 1929 and 1941 perfectly.

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The Great Depression was a complex event caused by a variety of factors. The six factors of the Run on the Banks, the Stock Market crash, the uneven distribution of wealth, problems for business and industry, problems for farmers, and the overuse of credit all played a role in the start of the Great Depression. All of these factors were an important factor in helping start the Great Depression. However, the overuse of credit was the most important factor of them all because it led to people relying on loans, too many payments for the consumer to adequately keep up with, and the economy eventually drying up once the influx of money stopped.

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What Caused the Great Depression? The Great Depression was a devastating tragedy that changed our economy. In the U.S, the Great Depression shortly happened after the stock market crash in 1929. This sent Wall Street into a great panic and wiped out millions of investors.

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half of its value in a month (Oakes 719). During the 1920s, the shift from an agricultural economy to a consumer goods based economy was taking place (Oakes 719). The shift caused crops to be valued very low, causing many people being to be unemployed, spending of what little savings they had, and then relying on “rickety credit and financial systems” (Oakes 719-720). Something very similar can be observed between the cause of the great depression and the most recent economic disaster. In both disasters, banks made risky investments or gave out risky loans, which lead to a much more disastrous financial meltdown (Oakes 720).

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The Great Depression, which was an economic downfall that started in 1929, lasted about a decade, but what caused it to spread in the first place? There were many key factors that caused the Depression to start, but what really ignited the spread of it internationally was everyone's debt to each other. After World War 1, many countries depended on one another to try and recover because of everything they lost during the war itself. For example, Britain was destroyed completely and had no way of paying for things to be fixed. Their economy was in a slump after war so The United States stepped in to aid.

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America had experienced other depressions or “panics,” but none were like the Great Depression. The Great Depression began on October 29, 1929, Black Tuesday, with the stock market crashing. Most people believe that the cause of the Great Depression was the stock market crashing. Although that is what triggered the Great Depression there were many underlying causes that lead up to the stock market crashing. Some of the underlying causes include under-consumption/over-production, uneven distribution of wealth, loose banking and corporate regulations, tariffs policies, and the stock market.

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In 1929, the U.S. was hit with the worst economic crisis in the history of the country, the Great Depression. The Great Depression left millions of people unemployed and cost millions their life's savings. The Depression lasted for ten long years for the American people. Since the Great Depression ended, people have studied it, trying to figure out what happened that started it all. The problem was, in fact, the poor economic habits of the people at the time, such as speculation, income maldistribution, and overproduction.

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World War II impacted the world greatly, and it brought many changes such as made countries fight against each other, and formed major alliances between countries. Most importantly World War II not only changed the world by creating new ways to destroy countries, using mass murders, invasions, deportations, and assassinations. It also dehumanized Jewish people, brought new advancements to the world, pushed technologies to it’s limits and it was the main reason for the creation of new vehicles and new weapons. It all began with the German Expansion across Europe. “Nazi Germany unleashed World War II with the intention of establishing, by military conquest, a permanent dominance over Europe respectively.”

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There were a variety of causes that caused the Great Depression, but the main cause that started it was a decrease in spending. This led to production decrease because manufacturers and merchandisers did not want to have unused items just sitting on the shelves. In October of 1929 the stock market crashed. The United States stock prices had reached levels that could not be justified by sensible predictions of future earnings. The results of this were catastrophic.

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The first cause of Great Depression was bank failure. It was one of the main causes of the Great Depression. Throughout the 1930s over 9000 banks failed. In 1920s there were a lot of banks.

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The Great Depression was the worst economic downturn in the history, which lasted from 1929 to 1939. It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Spending began to drop, and it caused declines in employment and some companies began to lay off workers. By 1933, the Great Depression reached its lowest point and millions of Americans were unemployed. The 1920s consisted of dramatic social and political change.

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