There were several cause of the Great Depression. Perhaps the biggest cause was the Stock Market crash in 1929. Other causes included bank failures, drought conditions and a reduction in purchasing across the board.
The primary reasons for the Great Depression were the loss of farm production, the inflationary state of the stock markets, and the lack of effective monetary and banking controls. Some point to the "gold standard" as having made the economic downturn worse by dragging almost all of the world's economies into the same cycle.
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1. Stock Market Crash of 1929
Many believe erroneously that the stock market crash that occurred on Black Tuesday, October 29, 1929 is one and the same with the Great Depression. In fact, it was one of the major causes that led to the Great Depression. Two months after the original crash in October, stockholders had lost more than $40 billion dollars. Even though the stock market began to regain some of its losses, by the end of 1930, it just was not enough and America truly entered what is called the Great Depression.
2. Bank FailuresThroughout the 1930s over 9,000 banks failed. Bank deposits were uninsured and thus as banks failed people simply lost their savings. Surviving banks, unsure of the economic situation and concerned for their own survival, stopped being as willing to create new loans. This exacerbated the situation leading to less and less expenditures.
3. Reduction in Purchasing Across the Board
With the stock market crash and the fears of further economic woes, individuals from all classes stopped purchasing items. This then led to a reduction in the number of items produced and thus a reduction in the workforce. As people lost their jobs, they were unable to keep up with paying for items they had bought through installment plans and their items were repossessed. More and more inventory began to accumulate. The unemployment rate rose above 25% which meant, of course, even less spending to help alleviate the economic situation.
The government had given people more money and then... People thought they were rich and went and spent it. Ends up they spent all there money and now they are poor. The government relises that have lost money and tax the businesses. now the businesses have no money and are laying people off because they can't afford to have as many workers. But to some it up.
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If anxiety and depression are correlated, there are three possible directions of causality. These are anxiety causes depression, depression causes anxiety, and there is an environmental stimuli that causes both anxiety and depression.
Obama
The dustbowl is a nickname for the Midwest during the great depression. I is one factor that causes the great depression because of the shortage of food.
yes there are MANY
Great Depression
The Great Depression was caused by a large amount of environmental factors that proved to be to much to handle at the time. The top causes of the Great Depression are: the stock market's crash, World War I, and the changes within the United States's political power.
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.
the cause what not enough chesse in germany
There were several things that culminated in the Great Depression. Primary among them are the Stock Market crash of 1929 and the unequal distribution of wealth.
what caused world war1 is the great depression
Although the causes are still debated to this day; typically most people date the Depression to the October, 1929 stock market crash.