Write a 150-200 word response summarizing the different events and causes that led to the great depression.
Thank you!
Check these sites for the information you need.
http://www.amatecon.com/gd/gdcandc.html
http://americanhistory.about.com/od/greatdepression/tp/greatdepression.htm
http://www.essortment.com/all/causeofthegre_rbtv.htm
Thank you, Ms. Sue! You always give wonderfully informative resources.
You're very welcome. :-)
The Great Depression was a severe and prolonged economic downturn that took place in the 1930s, affecting countries around the world. There were several events and causes that led to this devastating period in history.
One major cause of the Great Depression was the stock market crash of 1929. Before the crash, there was a speculative bubble in the stock market, with investors borrowing money to buy stocks. However, as confidence waned, people began selling their stocks, which led to a rapid decline in prices. This crash wiped out billions of dollars of wealth, causing panic and widespread financial distress.
Another factor was the failure of the banking system. Many banks had invested heavily in the stock market or loaned money to investors, and when their investments became worthless, they faced bankruptcy. People rushed to withdraw their savings, leading to bank runs and further economic instability.
Furthermore, the global economic downturn was exacerbated by protectionist policies. High tariffs and trade restrictions were implemented by countries in response to dwindling exports and to protect domestic industries. This led to a decrease in international trade and further economic slowdown.
Finally, the drought and dust storms of the Dust Bowl in the Midwest compounded the economic hardships. Agricultural productivity plummeted, leading to widespread poverty and unemployment.
In summary, the Great Depression was caused by a combination of factors, including the stock market crash, banking failures, protectionist policies, and environmental disasters. These events led to a collapse of the global economy, resulting in widespread poverty and unemployment for many years.