Asked in History, Politics & SocietyHistory of the United StatesAustralia in WW2The Great Depression
What are some causes of the Great Depression?
March 25, 2009 12:27AM
One of the most important factors that led to the Great Depression was the independence of national economies. A major drop in world agricultural prices hurt southern and eastern Europe, where agriculture was small in quantity yet high in cost. When unable to make a profit on the international market, these agricultural countries bought fewer manufactured goods from the more industrial parts of northern Europe, causing a widespread drop in industrial productivity. Restrictions on free trade also limited the economy . Most nations were raising high trade barriers to protect domestic manufacturers from foreign competition. Thus, these two causes combined together to form a major slow-down in the world economy.