Causes and Effects

CAUSES: 1. Stock Market Crash of 1929 Many believe erroneously that the stock mart crash that occurred on Black Tuesday, October 29, 1929 is flair and the same with the immense Depression. In fact, it was one of the major runs that pass on 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 callight-emitting rectifying valve the Great Depression 2. Bank Failures Throughout the 1930s all over 9,000 banks failed. Bank deposits were uninsurable and thus as banks failed nation barely lost their savings. living banks, unsure of the frugal position and have-to doe with for their own survival, stop being as willing to construct new loans. This exacerbated the situation leading to less and less expenditures. 3. decrement in purchase Across the Board W ith the stock market crash and the fears of tho economic woes, individuals from all classes stopped get items. This then led to a reduction in the look of items produced and thus a reduction in the workforce. As people lost their jobs, they were unavailing to keep up with paying for items they had bought by dint of installment plans and their items were repossessed.

more than and more inventory began to accumulate. The unemployment rate ruddiness above 25% which meant, of course, even less spending to dish alleviate the economic situation. 4. American Economic Policy with europium As businesses began failing, the government created the Smoot-Hawley tariff in 1930 to help har bor American companies. This charged a high ! tax for imports thereby leading to less stack between America and international countries along with some economic retaliation. 5. Drought Conditions While not a direct cause of the Great Depression, the drought that occurred in the Mississippi Valley in 1930 was of such proportions that many could not even pay their taxes or other...If you want to get a full essay, order it on our website: OrderEssay.net

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