what caused the great depression?

Answer 1

The Great Depression was a worldwide economic downturn which started in October of 1929 and lasted through most of the 1930s. It began in the United States and quickly spread to Europe and every part of the world, with devastating effects in both industrialized countries and those which export raw materials. International trade declined sharply, as did personal incomes, tax revenues, prices and profits. Cities all around the world were hit hard, especially those dependent on heavy industry. Unemployment and homelessness soared. Construction was virtually halted in many countries. Farming and rural areas suffered as prices for crops fell by 40–60%.[1] Mining and logging areas had perhaps the most striking blow because the demand fell sharply and there were few employment alternatives. The Great Depression ended at different times in different countries; for subsequent history see Home front during World War II. Most countries set up relief programs, and most underwent some sort of political upheaval, pushing them to the left or right. Democracy was weakened and on the defensive, as dictators such as Hitler, Stalin and Mussolini made major gains, which helped set the stage for World War II in 1939.


There is a popular misconception that the Great Depression began immediately after the Stock Market Crash in October of 1929. As a matter of fact, the Stock Market rebounded steadily immediately after the crash. Stocks rallied in November and this rally continued into December, recouping 1/3 of the stock market loss. Early in 1930, there were great expectations of a quick business revival. Hopeful expectations plus what appeared to be a normal increase in business in anticipation of a healthy spring trade pushed Big Board stocks up more than $4 billion in January, 1930, to a new total of $69 billion. In the spring of 1930, credit was ample and available at low rates. Auto sales did not actually decline below the good levels of 1928 until the end of May, 1930. Total NYSE stocks reached just under $80 billion by April 10, 1930, making up about 73% of its losses since its September, 19, 1929 highs. The Big Board had surged about $30 billion in five months, a gain of about 65%. Its loss from its September, 19, 1929 highs, was just about 12%. In the autumn of 1930, the Stock Market began its steady decline and the Great Depression began in earnest.

Answer 2

2 words to start this off, herbert hoover. the super melancholy replaced into no longer brought about while the industry crashed yet they have been proper. the two have been brought about with the help of the matters strengthen in Nineteen 1920s. The Nineteen 1920s have been a era until now the melancholy and after WWI, while the inventory industry and economic gadget boomed. The national earnings jumped 40% to 87 billion. credit additionally became customary. human beings have been informed to purchase now and pay later. during the Roaring 20s there replaced right into a farm melancholy. Farmers produced extra nutrition for WWI, yet while the conflict ended there replaced into much less choose for the products. fees of farm products fell 40%. The farm melancholy led as much as the super melancholy. while the farmers went broke, they won't pay their mortgages. they had to lease farms and flow. Banks additionally started out to bypass bankrupt during the Nineteen 1920s. The banks went broke as a results of fact the farmers weren't doing properly. approximately 550 banks went broke in a twelve months as a results of farm mess ups. yet another reason in the back of the melancholy replaced into that no longer each and every person have been given richer during the Roaring 20s. the prosperous in simple terms have been given richer and the poor in simple terms saved getting poorer. the agencies have been doing properly. So, the prosperous people who owned them have been given wealthier. the staff pay did no longer strengthen plenty. they did no longer have the skill to pay for for each and all of the products they needed. So, they offered on credit. quickly their human beings offered much less as a results of fact they have been in debt. With much less and much less human beings spending money, agencies went broke.

Answer 3

Stock markets and paper monies around the world became as useless as the guarantees that sold them. The after effect was a century of wars. We have computers to stop that from happening today.
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Answer 4

the ecomony and everybodys stock that they owned fell down enormously