What were the causes and effects of the great depression in the US?

Answer 1

Great Depression

There were several major causes of the Great Depression in the United States.

1. Unequal distribution of wealth. There was not a large middle class. While wages were rising for the majority of workers, they were not keeping pace with the increase in the cost of living or the wealth in the hands of the industrialists and others in the upper income classes.

2. There was over speculation in the Stock Market, which was not regulated. Many Americans purchased stock on credit. This was known as margin buying.

3. Increased manufacturing and agricultural output, but wages that did not keep pace for the consumers to purchase all that was produced or grown. Hence, inventories increased and agricultural income remained low.

4. Buying on credit, known in the 1920s as installment buying. People purchased things like refrigerators on time, and did not have money to pay for the product in the future, when the bills became due.

5. Federal regulations on businesses also contributed to the cause. Especially favorable to the large corporations were the taxes laws which were written . to encourage business expansion.

6. Banks were permitted to speculate in land and the Stock Market with little government regulations.

7. High tariffs and war debts helped spread the depression world wide.

8. The Stock Market Crash of 1929 signaled the beginning of the Great Depression The Great Depression was the most serious economic crisis in US history. All segments of society were effected in some way--economically, psychologically, and morally. Many people lost faith in our economic system for awhile, but eventually most Americans realized our economic system would survive and become stronger as a result of the Depression.

this article was written by a 5th grade class

Answer 2

The Great Depression Was caused because of the Stock Market crash. There was thousands of people out of work in Oklahoma city.They set up a soup line, and the food was clean and it was delicious.Many, many people, colored and white, I didn't see any difference because there was just as many white people out of work than were colored

Answer 3

the causes were people over speculated, the federal reserve, and tariffs. the effects were over speculated-this caused the stock prises to rise son high that everyone tried to sell their stock at once and the stock market crashed.

the federal reserve-they didnt do their job right and let banks loan more money than they were supposed to, they didnt check on the banks as much as they were supposed to

tariffs-the federal reserve raised tariffs on goods coming from foreign countries and the foreign co9untries did the same thing so no one was able to sell in foreign countries

Answer 4

prohibition

drought

world market was down due to Hiltlers taacktics in te 30"t