Discuss three major root causes of the Great Depression that were at work before the stock market crash of 1929.
Your answer should have a topic sentence, a body sentence(s), and a concluding sentence(s). You will need a minimum of 6-7 complete sentences to get full credit for your answer.
The Great Depression was a period of economic hardship that began in 1929 and lasted for a decade. It was caused by a variety of factors, including three major root causes that were at work before the stock market crash of 1929.
The first root cause of the Great Depression was the unequal distribution of wealth. The wealthy had become increasingly concentrated in the hands of a few, while the majority of the population had little to no savings. This meant that when the stock market crashed, the majority of people had no financial cushion to fall back on.
The second root cause of the Great Depression was the lack of consumer spending. The economy had become increasingly reliant on consumer spending, but wages had not kept up with the cost of living. This meant that people had less money to spend, leading to a decrease in demand for goods and services.
The third root cause of the Great Depression was the over-speculation of the stock market. Investors had become increasingly reckless in their investments, leading to an unsustainable bubble that eventually burst. This caused a massive sell-off of stocks, leading to the stock market crash of 1929.
In conclusion, the Great Depression was caused by a variety of factors, including three major root causes that were at work before the stock market crash of 1929: an unequal distribution of wealth, a lack of consumer spending, and the over-speculation of the stock market.