Which one of these was not the causes of the Great Depression?

excessive income taxes

speculative stock purchases

risky banking practices

severe drought

I think it is excessive income taxes or severe drought. But I don't think it is severe drought because of the Dust Bowl. But I'm not 100%. So, if someone would just clarify for me I would appreciate it. Thank you.

The question asks which was NOT a cause of the Great Depression.

Excessive income taxes were NOT a cause.

It was not excessive income taxes.

http://www.infoplease.com/ipa/A0005921.html

So, do you think that it is severe drought? Because I think speculative stock purchases and risky banking practices were causes of the Great Depression.

You're welcome.

Oh, I read that wrong, misunderstanding. Sorry. Thanks a bunch!

The Great Depression, which lasted from 1929 to 1939, was a severe economic downturn that had multiple causes. Out of the options you mentioned, "excessive income taxes" was not one of the causes of the Great Depression.

To arrive at this conclusion, let's examine each option one by one:

1. Excessive income taxes: While high taxation can have an impact on the economy, it was not a significant factor in causing the Great Depression. In fact, during the early years of the depression, income taxes were reduced to stimulate economic growth, not raised excessively.

2. Speculative stock purchases: This was indeed a cause of the Great Depression. In the 1920s, there was a speculative bubble in the stock market, as investors bought stocks on margin (using borrowed money) and drove up prices to unsustainable levels. This speculative frenzy eventually collapsed in 1929, leading to the stock market crash and contributing to the start of the Great Depression.

3. Risky banking practices: This was another significant cause of the Great Depression. Banks engaged in risky lending and investment practices, such as giving out loans with little collateral or investing heavily in the stock market. When the stock market crashed and people lost their investments, banks suffered major losses and began to fail. This led to a cascading effect, causing a wave of bank failures and a severe contraction in the money supply, which further deepened the economic crisis.

4. Severe drought: Although drought conditions, particularly in the Midwestern United States, were not a direct cause of the Great Depression, they did exacerbate the economic hardships. The drought, combined with poor farming practices and the resulting erosion, led to the Dust Bowl phenomenon, which devastated agricultural production. This, in turn, affected rural communities, causing widespread poverty and distress.

Therefore, the correct answer is "excessive income taxes" since it was not a primary cause of the Great Depression.