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What Caused The Great Depression Essay

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The Causes of The Great Depression

Poor, alone, and hopeless are just some of the tragic words that are used to describe the Great Depression. It was a time of extreme poverty all around America. People lived in “houses” that were old, poorly constructed, and provided little shelter in the cities. Our country had hit an all time low in the economy and we struggled to be able to survive through it all. There were many different causes of the Great Depression although, some had bigger impacts in creating the depression than others. The ones that highly stand out are the new attitudes of people, the unequal distribution of wealth, agricultural problems, and unemployment. They all are strongly related to the sudden downfall of the economy causing …show more content…

Throughout the 1920’s the gap between rich and poor continued to increase in size. This is because workers were not receiving wage increases like the managers and business owners were. So, in order to fix this the government increased luxury taxes hoping that it would solve the problem. Although, this did not solve the problem because it caused the economy to be extremely dependent of luxury spending. When luxury spending decreased due to the new tax the economy collapsed. Unequal Distribution of wealth was one of the biggest causes of the great …show more content…

The new attitudes of the consumers were care free and forced people to spend all of their money and none into savings. This caused people to lose all their money and to do it extremely quickly. The unequal distribution of wealth caused the economy to depend of luxury taxes and when were not provided it collapsed. Agricultural problems created very many poor farmers and without farmers and it was difficult for food to be provided. Unemployment, which was the biggest cause, affected many people to be without a steady source of income. All of these causes were strongly related to the Great Depression and the collapse of the

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