Explain cause and effects of the Great Depression?

Answer 1

The Great Depression was caused by a vicious cycle Ð banks were lending too much money to people who could not pay the banks back. This caused thousands to go out of business as banks stopped lending money. At the same time, too many people were borrowing money to use on risky investments. This caused heavy debt. Since factories could not borrow money, they had to lay off people as demand for products dropped. By the time President Hoover reacted, it was too little too late. The effects of the Great Depression included a 25 percent unemployment rate, about 6000 banks closing, the marriage and Birth Rate declined sharply as did the US total production of goods and just about everybodyÕs income was cut in half leaving many homeless.

Answer 2

The Great Depression was a result of many different factors. The post-war global economy was weak. Also, agricultural over-production proved to be a nuisance, which wasmade worse by falling food grain prices. To counter this, farmers began to increase production and bring even more produce to themarkets to maintain their annual incomes. This led to such a glut of food grains that prices plummeted further and farm produce was left to rot. Most countries took loans from the US, but American overseas lenders were wary about the same. When they decreased the amount of loans, the countries economically dependent on US loans faced an acute crisis. In Europe, this led to the failure of major banks and currenciessuch asthe British pound sterling. In a bid to protect the American economy, USA doubled import duties.This worsened the world trade scenario. All these factors contributed to the Great Depression.It affected USA the worst on account of its being a global loan provider and the biggest industrial nation.

Answer 3

So far, the great Depression was the largest economic collapse in the 20th century. It began in 1929 and ended after 1940's. This economic depression originated in United States ,and some historians believe that startjng point was the lllack Iue_:id@,Y- or Stock Market crash of 192~ The causes that originated the Great depreSSIon were chain of events tliat occurred after 1929. Some of these causes were the economic imbalances, the banking criSIS and the American economic policy with European countries. Even though, the Stock market crash was not one of the causes that led to great depression, millions of dollars were lost in the stock market. After a year the market raised to its original level. Although, people who lost their money were relucta~t to spend or jnvest based on the economic ~nsecUJjty. In addition to his downfall, during this time, about 8,000 [ban.ks fail to indemnify bank deposits. Banks lost their money and people once again lost their lifetime savings; banks that survived were not giving new loans and were not receiving any money from customers. To help and protect some American companies from the economic distress, the government created a new tariff (The Smoot~Hawley Tariff). This tariff charged higher taxes to import products. This tariff made the economic situation eyen more dramatic because resulted in less trade between United Slates a_nd other countries in Europe leading to a global economic 'collapse.
Economic Crash.

Answer 4

Reese Chesnut and Taylor Phillips had sex and created the Great Depression.