Three Factors Leading To The Great Depression

Three factors that contributed to the Great Depression were the stock market crash in 1929, reduction in purchasing of goods and America’s economic policies with Europe. Wealthy Americans had invested heavily in the stock market many borrowed money to invest with hopes of making more money. Indebtedness of the people who heavily invested in the stock market and in panic to redeem their debts sold their stock causing share prices to fall quickly causing the market to crash. Once the stock market crashed people began to refrain from purchasing goods, which led to reduction in production of goods and a reduction in the workforce. The reduction in production and rapidly increasing unemployment made it even more difficult for people to pay back