What was the cause of the great depression?

Answer 1

WWI was a big contribution to that... the money spent in the war and the debts that Europe owed the U.S. from the war.

Answer 2

:-)

None of the above.

The depression was due to the bubble economy of the United States prior to it. During the 20's the bubble in the stock market ran amock for over a decade, eventually moving into the banking system. When the market started to slide there were not provisions made to prevent a catastrophe, and, so, it kept sliding. Much like an avalanche it took in it's wake many solid companies that depended on these companies that existed only because of the bubble, it became a vicious circle that did not end until there was nothing left of the bubble. In fact many factories, homes and farms could be bought for a lot less than they were worth at the time.

The depression was a natural consequence of the 'irrational exuberance' that preceded it, and the legislative failure to implement controls.

Answer 3

The run on the banks. If the depositors and stockholders had kept their heads and not pulled their money, as some financial analysts have pointed out, there would never have been a depression.

Answer 4

Its comming in about 3 years....Don't kid yourself,the Debt collectors are comming and Dwyba wants to drain our line of credit.What happens when you as a individual tried this....bankrupt!

Answer 5

Bad trade agreements, low commodity prices(milk, butter, apples), overpricing on stocks and nasty tariff laws in Europe.

Answer 6

Runaway inflation

Answer 7

That depends on who you ask - the Democrats and Liberals will probably say George W. Bush. lol

Answer 8

stock market crash. Money being circulated was as valuable as used toilette paper. Introduction of welfare came next.