What are the causes of the Great Depression and how did it affect the people across the world?

Answer 1

There were several major causes of the Great Depression in the United States.
1. Unequal distribution of wealth. There was not a large middle class. While wages were rising for the majority of workers, they were not keeping pace with the increase in the cost of living or the wealth in the hands of the industrialists and others in the upper income classes.
2. There was over speculation in the Stock Market, which was not regulated.
Many Americans purchased stock on credit. This was known as margin buying.
3. Increased manufacturing and agricultural output, but wages that did not keep pace for the consumers to purchase all that was produced or grown. Hence, inventories increased and agricultural income remained low.
4. Buying on credit, known in the 1920s as installment buying. People purchased things like refrigerators on time, and did not have money to pay for the product in the future, when the bills became due.
5. Federal regulations on businesses also contributed to the cause. Especially favorable to the large corporations were the taxes laws which were written
to encourage business expansion.
6. Banks were permitted to speculate in land and the stock market with little
government regulations.
7. High tariffs and war debts helped spread the depression world wide.
8. The Stock Market Crash of 1929 signaled the beginning of the Great Depression.

Answer 2

The Great Depression, which began in October 1929, persisted until the outbreak of WW II. The economic stress of the Great Depression was a major factor in making people so unhappy that they were willing to go to war again, so soon after WW I, in a desperate effort to change things at any cost. Even aside from its role as a cause of WW II, the Great Depression caused much suffering around the world. It was a time when life became much less happy and much more of a struggle, for most people.

Answer 3

lost money in the stock maraket