What caused the 1930s great depression.?

Question

Please give a detailed decription of what caused the great depression i will reward 10 points for the best answer

Answer 1

The roaring 20's was a great time for a lot of people. It was the beginning of a revolution. The economy was rising and so were the prices. Businesses were doing good and when the stock market crashed the economy suffered big time. The supply and demand for items reversed and nobody could afford to buy the items from businesses because everyone had lost their jobs. And so those businesses closed which cost the economy even more money. It wasn't until FDR came up with the "New Deal" when the economy began to rise again. The New Deal included ways of bringing back businesses, jobs and money. If you want more info on the New Deal look it up in your book or google the subject. There is lots of info for this topic. Go for it. Hope I helped.

Answer 2

The drop in the stockmarket caused a depression in the market and consequentially suicides by businessmen jumping out of their office windows...all were effected by the depression...a deflationary spiral forced dramatic falls in asset and commodity prices, dramatic drops in demand and access to credit, and disruption of trade. However, the causes and relationship among them, as well as the role of government policy in causing or ameliorating the Depression, continue to be debated.

Theories about the causes are important for three reasons. First, the event was so huge and affected so many people that they and their decendants want an explanation. Second, debates in the 21st century about the best course of action to follow often use Depression examples (especially as warnings that if we do XYZ then we will have another Great Depression.) Third, macroeconomic models have to be able to explain the event to maintain their credibility.

Answer 3

The inventory market crash replaced right into a symptom, the monetary device replaced into unwell earlier the crash, because the market replaced into extremely over valued, and too many human beings offered on margin--that means that they really offered stocks hoping the cost would proceed to upward thrust, in order that that they could promote and pay their charges--even as the market corrected itself, panic ensued, and traders lost self assurance, and they expenses fell through the floor, that means that traders (both individual and institutional) did not have adequate to pay their margin, and went bankrupt. This damage banking, whose major agency is loans, or maybe as those who held loans went bankrupt, the banks could not supply their depositors their money. Out of this debacle got here such issues because the Securities and substitute fee, that imposed limits of margins, and making an investment, and managed banks, in order that that they could not use their depositors' money to play the inventory market--in spite of the actuality that a number of those guidelines were replaced those days. also, the FDIC replaced into positioned into position, to insure banks hostile to debris united statesthat occurred contained in the early 30's. All that suggested, earlier to the inventory market fall down, we already had the beginnings of the airborne dirt and dust bowl contained in the west, as a results of over farming, and the actual shown actuality that maximum farmers had not discovered of crop rotation yet--to supplement the soil. there replaced right into a drought, and locust also, and those undesirable turning out to be years, alongside with banks calling of their loans, even as they were given into hassle, contributed to the melancholy--causing many farm households to develop into displaced. to boot, once issues were given undesirable, on both city and farm, there replaced into little preliminary authorities reaction, which made issues worse for those in hassle, and led to a domino results of monetary disaster. also, there are some who declare that the 1918 Flu Pandemic, and the effect of WWI, also damage the monetary device, through disrupting the global monetary base, and impacting the exertions pool. And our goverment replaced into also slowed down in a conflict in imperative u . s . a . of america on the time, further stressing our supplies. yet that is better than you probable needed to understand... I do wish this facilitates.

Answer 4

here's a good site to check:
http://www.amatecon.com/gd/gdcandc.html

Answer 5

stock market crash