Main Causes Of The Great Depression In America

905 Words4 Pages
What were the main causes of the Great Depression in America?

Introduction:
With the collapse of the U.S. stock market in October 1929, the U.S. economy quickly entered a recession, and gradually spread to the world. After more than two years of struggle, the world economy comes into a more serious depression.
The Great Depression was the longest, deepest and most widespread depression of the 20th century. It originated in the United States.
Causes:
The Great depression was based on a variety of reasons. And it began in the 1929 the New York stock market’s big slump and spread a vicious circle. That affected the whole America and even the whole word.
Primary Causes: Capitalist society had productivity develops rapidly after the two times industrial revolution. Industry had formed a large-scale social production. As a result of the majority of the monopoly capitalists, they constantly expanded reproduction for the pursuit of profit especially in the period of economic prosperity. That broke the balance, lead to vicious competition and the intensification of the contradiction between the various sectors of society which led to the outbreak of the new economic crisis.
Direct Causes: First, the prosperity of the United States was based on unstable condition. A small number of monopoly groups control the economic lifeline of the country, which leads to uneven distribution of national income. On the one hand, the capitalist grab the high profits of national income
Open Document