cause of great depression?

Question

how would you support monopolistic pricing as a possible cause of the great depression

Answer 1

The three causes of the great depression were the stock market crashing, overproduction of farmers and factories, and bank failure.

Answer 2

There is a popular misconception that the Great Depression began immediately after the Stock Market Crash in October of 1929. 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.
Business cycles are a normal part of living in a world of inexact balances between supply and demand. What turns a usually mild and short recession or "ordinary" business cycle into a great depression is a subject of debate and concern. Scholars have not agreed on the exact causes and their relative importance. The search for causes is closely connected to the question of how to avoid a future depression, and so the political and policy viewpoints of scholars are mixed into the analysis of historic events eight decades ago. The even larger question is whether it was largely a failure on the part of free markets or largely a failure on the part of governments to prevent widespread bank failures and the resulting panics and reduction in the money supply. Those who believe in a large role for governments in the economy believe it was mostly a failure of the free markets and those who believe in free markets believe it was mostly a failure of government that exacerbated the problem. Current theories may be broadly classified into two or more main points of view. First, there is orthodox classical economics: monetarist, Keynesian, Austrian Economics and neoclassical economic theory, all which focus on the macroeconomic effects of money supply and the supply of gold which backed many currencies before the Great Depression, including production and consumption. Second, there are structural theories, including those of institutional economics, that point to underconsumption and over investment (economic bubble), malfeasance by bankers and industrialists or incompetence by government officials. Another theory revolves around the surplus of products and the fact that many Americans were not purchasing but saving. The only consensus viewpoint is that there was a large scale lack of confidence. Unfortunately, once panic and deflation set in, many people believed they could make more money by keeping clear of the markets as prices got lower and lower and a given amount of money bought ever more goods.

There are multiple reasons on what set off the first downturn in 1929, concerning the structural weaknesses and specific events that turned it into a major depression, and the way in which the downturn spread from country to country. In terms of the 1929 small downturn, historians emphasize structural factors like massive bank failures and the stock market crash, while economists (such as Peter Temin and Barry Eichengreen) point to Britain's decision to return to the Gold Standard at pre-World War I parities.

Answer 3

The Great Depression began in October 1929, when the stock market in the United States dropped rapidly. Thousands of investors lost large sums of money and many were wiped out, lost everything. The 'crash' led us into the Great Depression. The ensuing period ranked as the longest and worst period of high unemployment and low business activity in modern times. Banks, stores, and factories were closed and left millions of Americans jobless, homeless, and penniless. Many people came to depend on the government or charity to provide them with food.

Go to:
http://www.42explorer.com/depresn.htm

Answer 4

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Answer 5

Well, the depression was caused mostly by the crash of the stock market. Since people were placing all of their eggs into one basket, financially speaking, lots of littler companies went out of business and people lost their jobs. The bigger companies, the ones that were left, had attracted people because of competitive pricing.

Answer 6

There were many causes of the Great Depression. The one you mentioned might be one of the many causes.You might want to look for a book that deals only with the Great Depression.

Answer 7

The entire stock market crashed.

Answer 8

Does that have anything to do with the Stock Market Crash?

Answer 9

Market Crash.