What caused the Great Depression?
What caused the Great Depression? The Great Depression was caused by structural weaknesses and specific events that turned it into a major depression and in a way in which the downturn spread from country to country. Because of some of the country's economic failure between 1929-1930 was the cause. "In other periods of depression, it has always been possible to see some things which were solid and upon which you could base hope, but as I look about, I now see nothing to give ground to hope—nothing of man"(Former President Calvin Coolidge, 1932). This quote means that in the past depressions it was seen that people had hope but now there were no hope. The Great Depression was the worst economic depression in United States history. It started on October 29, 1929, a day known as Black Tuesday when there was a stock market panic and the stock market crashed. This crashing of the stock market actually started the previous Thursday when market dropped 9%. Historians point to several factors that caused this crash. Looking back some of the comparisons to today are interesting. Businesses were making great profits in the 1920s while workers were not making very much while still buying merchandise on credit. Another historian writes that the crash came during a period in which real estate prices were declining which had peaked four years earlier(Sam Montana,2009). Some causes of the great depression are bank failures, stock market crash of 1929, and reduction in purchasing abroad.
Bank failure was a cause, because at that time a lot of banks failed and causing people to lose all their saved money and make a huge depression. The 1930 was not that good for farmers and others, making the bank drop to three percent and making the year worse. The stock market crash of October 1929 left the American public highly nervous and extremely susceptible to rumors of impending financial disaster. Consumer spending and investment began to...
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The great depression. (n.d.). Retrieved from http://factoidz.com/facts-of-the-great-depression/
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