Causes and Effects

CAUSES: 1. Stock Market Crash of 1929 Many believe mistakenly that the stock merchandise crash that occurred on Black Tuesday, October 29, 1929 is hero and the same with the immense Depression. In fact, it was one of the major runs that lend 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 non enough and America truly entered what is callight-emitting crystal rectifier the Great Depression 2. Bank Failures Throughout the 1930s everyplace 9,000 banks failed. Bank deposits were uninsurable and thus as banks failed race merely lost their savings. living banks, unsure of the frugal position and implicated for their own survival, stop being as willing to establish new loans. This exacerbated the situation leading to less and less expenditures. 3. lessening in purchase Across the Board Wit h the stock market crash and the fears of tho economic woes, individuals from all classes stopped purchase items. This then led to a reduction in the issue 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 with 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 attend alleviate the economic situation. 4. American Economic Policy with atomic number 63 As businesses began failing, the government created the Smoot-Hawley tariff in 1930 to help cheer American companies. This charged a high tax for imports thereby leading to less stack between America and inappropriate countries along with some economic retaliation. 5. Drought Conditions While not a direct cause of the Great Depression, the drought that occurred in the Mississip pi Valley in 1930 was of such proportions th! at many could not even pay their taxes or other...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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