Why did the US enter a Great Depression?

Answer 1

There 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.

Answer 2

When World War I ended America was a prosperous nation. So prosperous the United States could afford to own stocks and bonds. The Roaring Twenties in America were extravagant and wild speculation in the US stock market rose to a peak well beyond reality. The result was a huge sell off of stocks. Millions of stockholders had serious losses and could not pay debs. Banks failed and caused panics, making the depression worse.

Answer 3

The great depression caused these hard times. The depression was when the stock market crashed. This was because a large amount of people sold out their shares at once and there was no more money to go around.

Answer 4

In October 1929. Also known as "Black Tuesday"

Answer 5

The United States did not ENTER the Great Depression. It HAPPENED to them when the Stock Marketcrashed. The depression affected the entire world. see attached link