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What Caused The Great Depression Essay

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The Main Causes of The Great Depression

The Great Depression started in the 1920s and was a worldwide catastrophe. Many lives were affected, and people had to learn to adapt to this new way of life. There are many reasons for why the Great Depression came to be, three of the main reasons are that it was caused by the stock market crash, bank failures, and collapse in world trade.

The stock market crash of 1929 played a huge role in the Great Depression. America was most affected by the Great Depression (“The Causes of the Great Depression”). People all around the world overspent and became in huge debt which later led to high demand for products. Oversupply and overproduction became an issue (Field) and citizens became desperate for basic …show more content…

Everyone tried to take their money out of banks at the same time. People and companies were not wise about how they spent their money, which led to huge amounts of debt. The banks had to close because everyone tried to get their money out and the bank didn’t have enough money (“The Causes of the Great Depression”). In addition to this, banks did not reserve money well. Before the Great Depression, banks would just lend people more money than they had and thus their debt grew. …show more content…

“The Great Depression Lesson about 'Trade Wars'.” History.com, A&E Television Networks, 5 Mar. 2018, https://www.history.com/news/trade-war-great-depression-trump-smoot-hawley.

“5 Causes of the Great Depression.” History.Com, 10 Mar. 2022, www.history.com/news/great-depression-causes.

“Great Depression: Black Thursday, Facts & Effects.” History.Com, 29 Oct. 2009, www.history.com/topics/great-depression/great-depression-history.

“Smoot-Hawley Tariff Act.” Encyclopædia Britannica, 8 May 2023, www.britannica.com/topic/Smoot-Hawley-Tariff-Act.

“The Causes of the Great Depression.” The Causes of the Great Depression | Texas Gateway, www.texasgateway.org/resource/causes-great-depression#:~:text=The%20causes%20of%20the%20Great%20Depression%20included%20the%20stock%20market,half%20of%20American%20banks%20closed. Accessed 21 May 2023.

Duignan, Brian. “Causes of the Great Depression.” Encyclopædia Britannica, www.britannica.com/story/causes-of-the-great-depression. Accessed 21 May 2023.

Field, Anne. “7 Causes of the Great Depression, and How the Road to Recovery Transformed the US Economy.” Business Insider, www.businessinsider.com/personal-finance/what-caused-the-great-depression. Accessed 21 May

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