Causes Of The Great Depression Essay

Causes of the Great Depression
The Great Depression made people panic It was a devastating time that begun in 1929 and lasted till 1939. The country’s economy plummeted dramatically during this period, and lot of deaths happened from starvation and diseases. Also, the country was affected because the great depression had spread throughout the trade market. The main cause of the Great Depression is unknown, but WW1, the stock market crash, and the Dust Bowl all contributed to the Great Depression.
There were only a small percentage of rich people left in America. Most Americans lived through life worrying where their next meal would come from. Factories were not interested in providing goods at lower price for the poor. This was allowed, …show more content…
Where the rich were getting richer by the day and living life to the fullest. People was investing their money into margins and as a result had made the economy rich. At the time the stock market was the backbone of achieving the American dream. However the glorious life that people were living was about to end, because in 1929 the stock market crashed affecting the economy. The leverage of buying stocks on margin was at a downfall, because instead of gaining money when the investors sold their stock they lost it. Unfortunately this made stockholders lose their money and the banks that loaned them the margins to not gain a profit. Individuals were forced to sell their homes or farms, because they were not able to pay the debt that they invested in. People were broke and hungry, so the next thing they did was called bank runs. It is when people that deposited in banks came and took their money out of the bank, because of this a lot of banks were forced to shut down.
The Dust Bowl was another major contribution to the cause of the Great Depression, because of the unemployment rise. The Dust Bowl was a hideous storm, that disturbed the middle western states. Farming was a growing industry for the United States during this time. The storm was caused by a windy drought that picked up the soil that the farmers dug up. Livestock, people, and crops died, because the storm picked up so much dust

Show More