What caused the bulky depression? What could have caused the favourable 1920s to be followed with the worst economic disaster in US history? Here are the main causes of the great depression. It all starts back at the beginning. In the 20s the prices of stocks were skyrocketing. People had more money and life was good. But it was all an illusion. As prices work so did business cost. This inevitably steer to a vertex where business were having a hard time staying both agonistical and profitable. All this sparked the beginning of black Tuesday October 29, 1929 the day the stock marketplace crashed. After the crash Americans started spending less and started saving more. This lead to less production and less jobs, causing unemployment to go high and higher. Attempting to recover the US government passed a series of laws that terminate up bother the economy. One example was the Smoot Hawley Tariff, which set a high tax on foreign goods. All this did was press down trading between the US and other countries further hurting the US economy.
Another major influence was the massive entrust failures happening across the country. As banks disappeared so did the money that was deposited in them. There was no such thing as verify by the government at that time. In other spoken language ordinary citizens where losing their life savings left and right. The average military personnel was unable to pay off his debts, so they simply borrowed more money causing more stress on the banks. This lead to panic. Panic steamed from the crash and forced people to retarding force their money out of banks. The panic only grew as more banks fell.If you want to get a full essay, order it on our website: Orderessay
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