What was a cause of the economic depression?

Answer 1

There are 4 major trends that lead to the Great Depression

1. Agricultural Problems-- Farmers were unable to pay back bank loans they used to buy tractors and other equipment and many farms were foreclosed, leading to banks being forced to close. Prices on food were going down, so farmers were forced to grow more food to make ends meet, which in turn made prices even lower. Bills to help farmers were vetoed by Coolidge on two occasions.
2. Installment Buying-- For the first time, large numbers of Americans bought things like cars, refrigerators and vacuums on credit and promised to pay 36 or 48 monthly payments. Because Americans were paying for past purchases, they were not able to buy other items available for sale. New goods were being produced, but people could not buy them, which led ot layoffs as early as 1928. As the depression began to worsen, this increased.
3. Uneven Distribution of Wealth-- The Mellon Tax Structure had a very minimal tax on the richest sector, theorizing that the benefits would trickle down throughout society. However, this did not occur. By the time of the stock marketcrash, the top 0.2% of America controlled 40% of the nation's savings. 3/4 of America made less than $3,000 a year.
4. Stock Market Speculation-- Like buying goods in installments, people would buy risky stocks with great possible payouts on credit, by putting down only 20% of what it was worth. As long as prices continued to rise, they could pay back to the other 80%, but as soon as they crash brokers wanted their money back, but it was impossible.

---

In the 1920's, Americans began buying goods they couldn't pay for. Consumers wanted the newest products, but didn't have enough money to buy them. They began to use a system called the credit card to buy luxury goods. Banks also made risky loans and did not spend money wisely. On Oct. 29, 1929, the stock market crashed. This event, known as Black Tuesday, was the #1 cause of the great depression. After the stock market crashed, Americans swarmed into banks, demanding their money back. However, the banks had made risky loans, and like the Americans, had little or no money to give back. Banks began closing all over the U.S. Americans also were afraid to buy anything anymore, so businesses started going out of business.

Also, during the depression, the area in the middle of the U.S., known as the Dust Bowl, was attacked by a huge drought that swept up topsoil. This soil made it possible to grow crops, and when it was blown up by huge dust storms, there was no way to farm. Many families who lived in the states of Oklahoma, Arkansas and Kansas were left with no work and no food. Many moved to California.

Answer 2

Causes of Depression The common thread that underlies much of depression is a sense of loss. This sense of loss may be real or imagined. Simple things like not eating properly and not getting proper rest can cause depression. A reaction to certain drugs can affect a person’s moods. All drugs affect the body and the mental processes in some way. If a drug results in the brain or nervous system toxicity, extreme depression could be the result. Toxic depression results when a person takes too much of a drug or sedative over an extended time. This kind of depression and drug toxicity will clear up in a day or so after the drug is no longer in the system. If you become depressed while taking a medication consult your medical doctor. The following are some physical causes of depression: hepatitis, hypoglycemia, infections, brain or nervous system disorders. Others such as glandular disorders, low thyroid, hyperthyroidism, excessive ovarian hormonal irregularities can cause depression. Repressed anger turned inward upon oneself will lead to depression. Reactive depression, or grief reaction, occurs after the loss of a loved one, job or some important opportunity is very common. This usually lessens with time. The loss of a close friend or relative brings on this kind of emotional reaction. Biochemical or endogenous depression is caused by a disturbance in the body’s chemical system. Negative and faulty thinking is the root of most depression. Low self–esteem causes, reinforces and intensifies depression. Unrealistic expectations cause depression. Excessive self–pity leads to depression. This in turn reinforces a poor self-concept and further aggravates the depression. If your behavior is contrary to your moral standards or your value system this can result in depression. It produces real guilt, and guilt is a component in depression. Success, achieving a high goal, gaining a valued position with the demands for higher level of performance can be threatening and lead to depression. Postpartum blues after the birth of a child may lead to depression. Physical exhaustion can contribute to depression.

Answer 3

The stock market crash marked the beginning of the Great Depression. However, several underlying causes were the actual reason for the depression. The "stock bubble" which was the buying of empty stocks was one reason. Another was the wealth disparity in the US which limited the circulation of capital. Economic nationalism also contributed to the depression, resulting in a "compound effect".

Answer 4

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.

Answer 5

Mainly, it was linked to the Stock Market Crash on Black Tuesday, though to today, many people disagree upon the causes.

Answer 6

the causes of the great depression is what happend in the past around like worl war 2 wher men whamen and childen died

Answer 7

money isues