How did political and economic factors contribute to great depression?

Answer 1

During the 1920s the national and state governments did not regulate industry or manufacturing or economic institutions to protect the consumers. What regulation there was usually benefited business. Business was left pretty much alone to do as it wished. Government was left to a second hand role in the economy and concentrated mainly on relations with other nations. Federal regulations were especially favorable to the large corporations and the tax laws which were written encouraged business expansion. Banks were permitted to speculate in land and the stock market with little government regulations. High tariffs and war debts helped spread the depression world wide.

Answer 2

Most of the causes were economic but the nation's economy was regulated according to the ideas of the leaders at that time. During the 1920s, it was expected that government do little to regulate industry because things seemed to be going along so well. There were some indicators, however. There was over speculation in the Stock Market, which was not regulated.

Many Americans purchased stock on credit. This was known as margin buying. 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. Banks were permitted to speculate in land and the stock market with little

government regulations.

High tariffs and war debts helped spread the depression world wide.

Answer 3

Economic distress,high market price and price rise in every commodity necessary by common man, increased price of fuel. Poor life standards and depression.