The Great Depression lasted from
1929-1939. What caused the Great Depression,
the worst economic depression in the history of
the United States? The truth is that is not
possible to point to just one factor. Instead a
combination of domestic and worldwide
conditions led to the Great Depression. The
effects of the Great Depression were
detrimental across the world. Not only did it
lead to the New Deal in America but more
significantly, it was a direct cause of the rise of
extremism in Germany leading to World War
II.
It is not possible to give a definitive list of all
the causes of the Great Depression. Here
instead is a list of the top reasons that
historians and economists have cited as causing
the Great Depression.
01
of 05
Stock Market Crash of
1929
Many believe erroneously that the stock
market crash that occurred on Black Tuesday,
October 29, 1929 is one and the same with the
Great Depression. In fact, it was one of the
major causes that led to the Great Depression.
Two months after the original crash in October,
stockholders had lost more than $40 billion
dollars. Even though the stock market began to
regain some of its losses, by the end of 1930, it
just was not enough and America truly entered
what is called the Great Depression.The Great Depression lasted from
1929-1939. What caused the Great Depression,
the worst economic depression in the history of
the United States? The truth is that is not
possible to point to just one factor. Instead a
combination of domestic and worldwide
conditions led to the Great Depression. The
effects of the Great Depression were
detrimental across the world. Not only did it
lead to the New Deal in America but more
significantly, it was a direct cause of the rise of
extremism in Germany leading to World War
II.
It is not possible to give a definitive list of all
the causes of the Great Depression. Here
instead is a list of the top reasons that
historians and economists have cited as causing
the Great Depression.
01
of 05
Stock Market Crash of
1929
Many believe erroneously that the stock
market crash that occurred on Black Tuesday,
October 29, 1929 is one and the same with the
Great Depression. In fact, it was one of the
major causes that led to the Great Depression.
Two months after the original crash in October,
stockholders had lost more than $40 billion
dollars. Even though the stock market began to
regain some of its losses, by the end of 1930, it
just was not enough and America truly entered
what is called the Great Depression. Bank Failures
Throughout the 1930s over 9,000 banks failed.
Bank deposits were uninsured and thus as
banks failed people simply lost their savings.
Surviving banks, unsure of the economic
situation and concerned for their own survival,
stopped being as willing to create new loans.
This exacerbated the situation leading to less
and less expenditures
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View Comments
In America, the Great Depression happened. We hope it never happens again! The main lesson to take away from this economic event is to never risk your life savings.