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excessive borrowing to buy stocks leading to the Stock Market crash of 1929
Theodora Hartmann
Wiki User
∙ 13y agoThere were several major causes of the Great Depression in the United States.
1. Unequal distribution of wealth. There was not a large middle class. While wages were rising for the majority of workers, they were not keeping pace with the increase in the cost of living or the wealth in the hands of the industrialists and others in the upper income classes.
2. There was over speculation in the Stock Market, which was not regulated.
Many Americans purchased stock on credit. This was known as margin buying.
3. Increased manufacturing and agricultural output, but wages that did not keep pace for the consumers to purchase all that was produced or grown. Hence, inventories increased and agricultural income remained low.
4. Buying on credit, known in the 1920s as installment buying. People purchased things like refrigerators on time, and did not have money to pay for the product in the future, when the bills became due.
5. 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.
6. Banks were permitted to speculate in land and the stock market with little
government regulations.
7. High tariffs and war debts helped spread the depression world wide.
8. The Stock Market Crash of 1929 signaled the beginning of the Great Depression.
Wiki User
∙ 11y agoExcessive borrowing of stock leading to the stock crash :) Have fun on study island!
OPINION:
The main cause of the great depression was the life style of the 1920s america. the people at that time did not save money. they over-consumed as they had high wages, and there were low prices. the only matter was to live the life you have and to benefit from it as much as possible.
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What major economic event happened in the US during the 1930s?
The great depression.
This was a major social change during the great depression?
repeal of prohibition
Which economic trend of the 1920's helped cause the Great Depression?
The major economic trend of the 1920s that helped caused the Great Depression was likely the unequal distribution of wealth. Another factor was over speculation in the stock market.
What major world event os credited with the ending of the great depression?
The war
What was a major social change during the Great Depression?
Prohibition was a major social change during the great depression. Enacted by a constitutional amendment, it was legal to have liquor, but not to buy it allowing an illegal underground movement to fulfil the consumers wants.
What major economic event happened in the US during the 1930s?
The great depression.
What came first Great Depression or world war you?
WWI was a major cause of the Great Depression.
What major issue were roosevelt and the democrats facing the 1930s?
RooRoosevelt and the Democrats were facing the Great Depression.
Major events in 1929?
In 1929, the stock market crashed in the United States. This was the beginning of the Great Depression, which lasted throughout the 1930s.
What major issues were Roosevelt and democrats facing in the 1930?
RooRoosevelt and the Democrats were facing the Great Depression.
What was Franklin D. Roosevelt greatest accomplishment?
Franklin D. Roosevelt had two major accomplishments, the great depression in the 1930s and world war II
How do you use major depression in a sentence?
1. How do you use major depression in a sentence? 2. An example of a major depression is the Great Depression of the 20th Century in the USA.
What was the name given to the global economic collapse in the 1930s?
Started from about 1929, in most of the countries, until late 1930s that period in which major economies of the world suffered is known as the Great Depression.
Which factor was a major cause of the Great Depression of the 1930?
excessive borrowing to buy stocks leading to the Stock Market crash of 1929
What were the root causes for the US's sense of isolationism in the late 1930s?
The major root cause for the sense of Isolationism portrayed by the United States in the 1930's was the Great Depression. With a World War I having just ended, the major economic catastrophe that hit the US caused our leaders to focus inward to affairs at home rather than abroad.
What was theordore Roosevelt biggest success?
Franklin D. Roosevelt had two major accomplishments, the great depression in the 1930s and World War II
What were the major problems that industries faced in the Great Depression?
penis
