World War 1
Politics and Government

How did buying on credit cause the Great Depression?

Top Answer
User Avatar
Wiki User
Answered 2011-05-13 13:28:13

When people would buy expensive things on credit, and then buy more expensive things on credit, when the bill came around they couldn't afford it, and then what had been bought would be repossessed, but oftentimes what had been bought would lose value. thus, causing the great depression

User Avatar

Your Answer

Related Questions

The Stock Market Crash of 1929 was not a cause of the Great Depression but it signaled the beginning of the Great Depression.

The four causes of The Great Depression were: D- Distribution of Income (was unequal) E- Economy (Huge BOOM so there had to be a huge bust) E- Easy Credit (Anyone can buy on money was being circulated. All I Owe you's) M- Mechanization (Machines were taking over the jobs of people)A cause that started the Great Depression was the crash of stock markets.

The main cause to the start of the great depression was the Wall Street Crash in 1929.

-Depression -Lack of food and homes

WWI was a major cause of the Great Depression.

The Stock Market Crash of 1929 signaled the beginning of the Great Depression, it did not cause it. There was over speculation in the Stock Market, which was not regulated.Many Americans purchased stock on credit. This was known as margin buying. Inflated stocks indicated that not all companies listed on the Stock Exchange were healthy and economically sound.

One major cause of the Great Depression of the 1930's was the stock market crash.

The cause of the Great Depression was that the stock market crashed and lots and lots of people lost their jobs. It started in 1928 and ended in 1933.

The Great Depression started in October 1929 when the New York Stock Exchange crashed and everyone was poor instantly. Another cause of the Great Depression was over-farming in the Midwest which caused huge dust storms that ravaged crops.

no there were many other long term cause which helped cause the great depression. the wall street crash was a cataylst that sped up the depression. if the wall street crash never happened the long term cause would have cause the depression on their own eg overproduction, tariffs etc

It started in 1930s, after the stock market crash in 1929. The cause of the Great Depression was inflation on goods

Black Tuesday was the day of the largest crash in the US stock market. It was trigger of the great depression, however it was NOT the underlying cause.

No, the stock market crash of 1929 by itself did not trigger the Great Depression. It was one of the factors leading up to the Great Depression, but it was not the sole cause and maybe not even the main cause. There was a mix of domestic and international conditions and events that caused the Great Depression.

The great stock market crash of 1929

No, rubbing a dog's belly does not cause depression. Too much change, not enough exercise, play, can cause depression in dogs. A great resource for information on dog depression is:

The crash of the stock market in 1929.

The underlying causes of the Great Depression included the 1929 stock market crash, the failure of large banks, and the lack of purchasing. Also, drought conditions affected farming and helped to cause the Depression.

Buying stocks on margin and speculation. As stock prices fell, people sold stocks. This flooded the market with stocks no one wanted.

The rich were getting richer by selling stocks they bought cheap and the poor who were buying didn't know that wasn't good stock to but and lost their money

The immediate cause of the Great Depression was the stock market crash of 1929, also known as Black Tuesday.

The most popular belief of the cause of the Great Depression is the stock market crash of 1929. Economist still debate about the other causes. Excess speculation in the stock markets added to the causes of the depression.

Copyright ยฉ 2021 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.