What was the great depression? The Great Depression was a severe worldwide economic depression in the decade. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s. It was the longest, most widespread, and deepest depression of the 20th century. Although the question that arises is that what actually caused the great depression? The answer to this is that it was not just one factor, but instead a combination of domestic and worldwide conditions that led to the Great Depression. As such, there is no agreed upon list of all its causes. Here instead is a list of the top reasons that historians and economists have cited as causing the Great Depression. The top five reasons are:
* The Stock Market Crash of 1929
* The Bank Failures
* Reduction in Purchasing Across the Board
* The American Economic Policy with Europe
* The Drought Conditions
The stock market crash: The stock market crash occurred that 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. The Bank Failures: Throughout the 1930s over 9,000 most banks failed. Bank deposits were uninsured and therefore as banks failed people simply lost their savings. The banks that did survive were 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.
Reduction in Purchasing across the Board: With the stock market crash and the fears of further economic woes, individuals from all classes stopped...
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