What were some of the main causes of the Great Depression?

Question

please list and give some details

Answer 1

Since the very inception of this country, the propertied people have been quietly at war with the non-propertied. As the robber barons of old abused their powers, laws were put in place to keep them from getting too crazy. That’s where the laws on monopolies, oligopolies, inside trading, and the like came from. Every time they made new laws, people in business found other ways to exploit the system. Such was the case with the great recession.

There were no effective laws establishing how much money or capitol you had to have to secure loans for stocks and bonds. The bubble of false value grew disproportionately over the actual worth of the businesses the stocks and bonds represented. ... then somebody burped.

Our entire system of currency depends upon public acceptance of the common value of our currency and the beliefs we hold about property... in this case... the stock market.

Our government, under the divine guidance of the Harvidian economic theorists, was under the impression that regular supply and demand forces would be enough to keep the train from jumping the tracks. Cool. ... Wrong bucko!

As stocks fell, people ran to cash in their stock and reclaim whatever kind of money their investments would yield. Stocks were selling for less than the outstanding loans investors had secured to originally purchase their stocks... leading to a margin call. Banks tried to cover what they could... but in the long run, the money wasn't there. Knowing that banks were failing, people ran on the banks and the government had no emergency plan to shut down the banks for a cooling off period or to slow down what was happening.

Our toppling stock market's woes were being mirrored in other markets around the world. It didn't just happen here. The world market's failed. In the end, we learned that the money we had in our economy was much less than the economy generates... What that means is that a dollar in your pocket is worth ... nothing if you don't spend it. If you spend it and that person spends it and the next holder of the dollar spends it... and so on, and so on... each dollar is worth several dollars. Our economy stalled and overnight, real live money became as scarce as hen's teeth.

Now, instead of unsecured loans for stock... we have credit cards. Most credit cards have no margin limitations. They are assigned based on our past capacity and willingness to repay... history. This time, we're not even looking at printed money. This time, the banks and businesses are creating money on their own... in the form of cyberplati-cash.

Were folks in government blind to what might potentially happen in the stock market all those years ago? Perhaps... but not too likely. Are they blind to what is happening now? Because we've allowed our political system to become more and more reliant on corporate funding to get people re-elected, elected officials are reluctant to mess with the money flow. There are no checks and balances. What we have is a conflict of interest.

What were the main causes of the Great Depression? They were greed, greed, and ... uh... greed.

Answer 2

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 (US$4.86:£1).

Answer 3

Causes of the Great Depression:
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 4

The inventory marketplace crash was once a symptom, the economic system was once unwell earlier than the crash, because the marketplace was once incredibly over valued, and too many humans purchased on margin--which means that they just about purchased shares hoping the rate might retain to upward push, in order that they might promote and pay their fees--whilst the marketplace corrected itself, panic ensued, and traders misplaced trust, they usually costs fell by way of the ground, which means that traders (each person and institutional) didn't have adequate to pay their margin, and went bankrupt. This harm banking, whose foremost industry is loans, and whilst humans who held loans went bankrupt, the banks might no longer deliver their depositors their budget. Out of this debacle got here matters just like the Securities and Exchange Commission, that imposed limits of margins, and making an investment, and controlled banks, in order that they might no longer use their depositors' cash to play the inventory marketplace--even though a few of these laws were modified not too long ago. Also, the FDIC was once placed into position, to insure banks in opposition to disasters that occurred within the early 30's. All that stated, previous to the inventory marketplace cave in, we already had the beginnings of the grime bowl within the west, because of over farming, and the truth that so much farmers had no longer found out of crop rotation but--to counterpoint the soil. There was once a drought, and locust additionally, and the ones dangerous developing years, along side banks calling of their loans, once they bought into situation, contributed to the melancholy--inflicting many farm households to end up displaced. In addition, as soon as matters bought dangerous, on each town and farm, there was once little preliminary govt reaction, which made matters worse for the ones in situation, and precipitated a domino outcome of monetary crisis. Also, there are a few who declare that the 1918 Flu Pandemic, and the influence of WWI, additionally harm the economic system, via disrupting the sector monetary base, and impacting the hard work pool. And our goverment was once additionally slowed down in a conflict in crucial the us on the time, extra stressing our assets. But that is greater than you more commonly desired to grasp... I do desire this is helping.

Answer 5

1. The stock market crash in October 1929.

2. Rampant debt in the housing market.

3. The dominance of oligopolies in major industries.

4. Overproduction in produce caused declining crop prices. Instead of growing less, farmers grew much much more.

5. Lack of investment in new construction and cars.

6. General lack of innovation in creating new inventions.

7. Low wages.

8. Unequal distribution of wealth. About 1% of the population held 75% of the wealth.

9. Unregulated speculation in the stock market.

10. The failure of President Hoover to negotiate for lower tariffs with Europe.

Skylor Williams

Answer 6

Supply side economic's, the money shifted to the top 5% and when the stock market crashed many lost and that cause no jobs, It snow balled into the depression. People would not vote for repuglicans for many years after that. .

Answer 7

they took the coke out of coca-cola, within a year, market crashes. Not a depression, just a nationwide coke withdrawal

Answer 8

I dont know how accurate I am but I always thought it had to do with people cashing out investments that they had in the stockmarket causing a crash.

Answer 9

Gorge W. Bush caused it. jk