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Due to the surge in sales factories began producing more and more items as the demand to have them sky rocketed in the Roaring Twenties. By 1929, when people began losing their jobs and had no way to pay their mounting credit debt to their bank. People's items began to be repossessed and when the stock market crashed people with loans that were supported by stock began to lose there homes and were forced to take to the street. Now that the stock market had crashed those who hadn't lost everything made a dash to their bank to withdraw their entire saving in an attempt to salvage what assets they had left. However more often than not the banks had no more money to dispense
Three of the main causes to The Great Depression involved the crash of the stock market, job loss and buying on credit. To begin with, the crash of the stock market was the starting factor that let to the downfall of many lives. The stock market was flourishing with investors but reduced economy by 60% over all (Document 1). Around 4 million Americans including many banks had invested large amounts of money in stocks hoping to earn gains (Document 3).
There were many factors that led to the United States to go into the great depression. For example, the main one was the crash of the stock market. After the stock market crashed. Many banks had to close, and many people that had their moneys in the bank, lost it all. Also the amount of loans and debts that were created do to world
The causes of the Great Depression were the stock market crash,
Hayleigh Smith Donnelly US History 3 March 2024 What caused the Great Depression? What were some of the precursors to this? The Great Depression, starting in 1929 and lasting through the 1930s, was a worldwide economic depression that had a major effect on people everywhere. People were dying of illness and starvation, they were losing their jobs, their homes, and even members of their family because of the financial hardships the Depression put them through. Although the Great Depression was one major event, there were several causes and precursors that led to the end result of this catastrophe.
The "roaring" 20's allowed the banks to make a lot of money, so they invested it in expanding the business. When the economic prosperity of the 1920's was flooded with all the stocks people were buying, the system didn't have enough money in it to continue. It was only a matter of time before total economy failure, the stock market crash just sped it up. Everyone went to the banks for their money so they could pay their debts, but the citizens didn't know the banks used the people's money for investments, and lost all the money in the stock market crash. One by one the banks began to fail.
Therefore, the Great Depression was caused by the Stock Market Crash of 1929. The American people began investing in many useless things that were overpriced
During the Great Depression the unemployment rate went up, they were forced to eat at soup kitchens or go through garbage cans for food, and they even had to build shelter out of cardboard. The first underlying cause of the Great Depression was underconsumption and overproduction. Many things contributed to the underconsumption of goods. The production line kept producing goods even when people could not afford to buy them.
The average person did not have the money to buy all the needs and wants desired. The economy started to turn into an unstable one, due to the amount of money owed. During the 1920’s, it was very popular for people to purchase an item and pay it off at a later date.
However, the Great Depression darkened the economies
The Great Depression was caused by speculation and installment buying, income maldistribution, and overproduction because each of these factors combined made the economy worse before and after the stock market crash, which led to The Great Depression. Speculation and installment buying helped caused The Great Depression because people were buying so much stuff on credit, when
This led to six long years of depression for the United States of America, and is another great reason why Andrew Jackson, also known as “Old Hickory”, was one of the worst presidents the United States ever had in its great history of US
What caused the Great Depression was when the stock market had crashed. When this crashed, it caused America to sell less and less goods. “In 1939, when World War II erupted in Europe with Germany’s invasion of Poland, numerous economic indicators suggested that the United States was still deeply mired in the depression. For instance, after 1929 the American gross domestic product declined for four straight years, and then slowly and haltingly climbed back to its 1929 level, which was finally exceeded again in 1936.” (Watkins, 2002; Johnston and Williamson, 2004) Because of this, this cause unemployment rates to go up, half of all banks go out of business and the stock market to lose its value.
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.
