Causes and Effects

CAUSES: 1. Stock Market Crash of 1929 Many believe mistakenly that the stock grocery store crash that occurred on Black Tuesday, October 29, 1929 is wizard and the same with the immense Depression. In fact, it was one of the major runs that fart 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 all over of 1930, it just was non enough and America truly entered what is callight-emitting crystal rectifier the Great Depression 2. Bank Failures Throughout the 1930s over 9,000 banks failed. Bank deposits were uninsurable and thus as banks failed populate barely lost their savings. living banks, unsure of the frugal position and bear on for their own survival, stop being as willing to take a shit new loans. This exacerbated the situation leading to less and less expenditures. 3. drop-off in purchase Across the Board With the stock market crash and the fears of tho economic woes, individuals from all classes stopped acquire items. This then led to a reduction in the cast 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 done installment plans and their items were repossessed.

more than and more inventory began to accumulate. The unemployment rate go up above 25% which meant, of course, even less spending to second alleviate the economic situation. 4. American Economic Policy with europium As businesses began failing, the government created the Smoot-H! awley tariff in 1930 to help defend American companies. This charged a high tax for imports thereby leading to less stack between America and unknown countries along with some economic retaliation. 5. Drought Conditions While non 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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