Why did the great depression occur?

Answer 1

The Great Depression was the 'pop' of the speculative bubble that swelled due to loose credit policies during the 1920s. These policies were implemented as a political favor mostly to Great Britain, who was desperate to stop their outgoing flow of investment-backing precious metals. When the bubble popped, there was a stock-market crash due to the massive and sustained sell-off, followed by a run the on banks; these things tightened up credit that then choked off business and enterprise.

Answer 2

The Great Depression was a recessionary fiscal event, caused by the overvaluation of corporate assets and by speculative investment (mostly unwise, some illegal). It was a natural down cycle that was exacerbated by a number of conditions, including a laissez faire attitude by government toward the practices of big business, banks, and investment companies. (This was also the case for several financial crises in the late 20th and early 21st centuries.) The fact that this recession affected countries around the world indicates that it was not the result of activities only within the US.

The trigger of the Great Depression, the Wall Street Stock Market crash of 1929, resulted in a severe loss of production capital that deepened the Depression and created widespread unemployment.

Answer 3

The Great Depression occurred in many parts of the world, it hit mainly Germany the USA, Russia and Britain. Germany was hit the worst, their currency became nothing, with all their life earnings they could barely buy a cup of coffee.

following the stock market crash of 1929

Answer 4

The Great Depression happened because many of the businesses of the 1920's and 30's stocks were growing at an alarmingly fast rate. And soon the stocks were worth more then the companies themselves. And so many people lost tons of money that they didn't have. And they didn't have the money because they bought the stocks on what we call " credit" today..... And then businesses closed which caused banks to close and so on.

Answer 5

I think it was around October 12th 1920's when Black Tuesday happened. The stock marketcrashed and banks went broke. This led to layoffs and huge unemployment which resulted in the great depression.

Answer 6

The prices in the stock marketgot so large that people realized they were not worth the selling price, so the prices dropped like a rock. This combined with the fact that people had borrowed lots of money to play the stock market caused a econimic melt down. Since People lost all their money, declared bankruptcy and the banks lost the money they lent out and a chain reaction from there

Answer 7

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 8

Click on the link to your right for all information regarding the Great Depression.

Answer 9

The Great Depression occurred between the years of 1929 and the 1930s or 1940s. But for some countries it took almost until World War 2 to end.