What Caused The Great Depression Essay

Have you ever had to loose your house just because you couldn't pay the bills well this is what was happening all over in the great depression.the great depression occurred from 1929-1941 in the us. During this time of need people were starving and living on the streets while others were just trying to scrape by with the rent due or even getting groceries. what could have cause the great depression.Although there were many factors that came together to cause the Great Depression, three main causes were overproduction , speculation in stock market , and income inequality One significant cause of the Great Depression was over production.in the text it states In past times...[w]hen people had bought all they could afford they stopped buying; production

(Davis happily monthly).this quote explains to us that when the car manufacture started to use just surplus the cars were cheap but when the car manufacturers started to make them again and the the price went up so people were stuck with a big bill.in the illustration you can see a farmer tripping over a bale of some sort that had overproduction written on it. and eggs that feel cracked and some of the cracked one says wheat prices and cotton prices. this can tell us that the overproduction killed the farming industries by making it so there was no profit from farming anymore because the prices were so low. over production helped cause the Great Depression because it lowered the prices of many products which made it so the business owners selling these things went out of business. also the farmer that had to deal with this couldn't because there was no profit being made from farming anymore. this is why over production cause the great depression.A second important cause of the Great Depression was speculation in the stock market.in the text a it states "If he invests in good common stocks and allows the dividends…to accumulate, he will at the end of twenty years have at least eighty thousand dollars and an income from investments of around four hundred dollars a

when the stock market crashed a lot of people that invested all their money lost all of it. in b we can see a news paper articular that tells us that the stock market has lumped 14,000,000. this is why a lot of people lost a lot of their money because people were investing their life savings to try and make money. in document c it states "As more investors put their money into [stocks], in the hope of making a quick profit on a speculative rise in stocks… the exchange became a betting ring where people gambled on stocks in much the same fashion that gamblers wagered on roulette or horse races. this proves that the collapse of the stock market cause the great depression because it shows how a lot of people were investing. when the stock market crashed all those people that were investing lost a lot of money. speculation in the stock market contributed to the Great Depression because of all the people that were investing and then losing all there money money to the stock market collapse.Still another cause of the Great Depression was income inequality in document d it states "It takes about $16 a week to feed