What conditions led to the Great Depression? Select all that apply.
Stock market crash of 1929, overproduction of goods, decrease in consumer spending, bank failures, trade policies, economic inequality, international debt, and drought and agricultural failures.
The conditions that led to the Great Depression include:
1. Stock Market Crash: The stock market crash on October 29, 1929, also known as "Black Tuesday," was a major trigger for the Great Depression. It led to a significant decline in stock prices and a massive loss of wealth.
2. Overproduction and Underconsumption: In the 1920s, there was a rapid expansion of industrial production, which led to overproduction of goods. However, consumers' purchasing power did not keep pace with the increased production, leading to excess inventory and a decline in demand.
3. Bank Failures: Many banks that had invested heavily in the stock market and made risky loans to consumers and businesses collapsed when the market crashed. The failing banks led to a loss of people's savings and disrupted the availability of credit for businesses.
4. Decline in International Trade: The Great Depression was a global phenomenon, fueled by a decline in international trade. High trade tariffs, protectionist policies, and a decline in global economic activity restricted the flow of goods between nations, exacerbating the economic downturn.
5. Dust Bowl: Severe drought and soil erosion in the Midwestern United States during the 1930s resulted in the Dust Bowl. This ecological disaster led to massive agricultural failures and contributed to the overall economic crisis.
6. Government Policies: Some economists argue that government policies played a role in exacerbating the Great Depression. For example, the U.S. Federal Reserve's tightening of monetary policy and failure to provide sufficient liquidity to banks contributed to the financial crisis.
Please note that these are some of the significant factors that contributed to the Great Depression, and there may be additional causes as well.