The Major Causes Of The Great Depression

Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920 's and 30 's, and the extensive stock market speculation that took place during the 1930 's. These were not only the factors of the great depression, structural weaknesses and the fact that most of the other countries were affected just kept the depression going were also played a part. The resulting period ranked as the longest and worst period of high unemployment and low business activity in modern times. The Great Depression was the worst economic slump ever in U.S. history, and one that spread to the entire industrialized world. Banks, stores, and factories were closed and left millions of Americans jobless, homeless, and penniless. Many people came to depend on the government or charity to provide them with food. It led to a sharp decrease in world trade as each country tried to protect their own industries and products by raising tariffs on imported goods. The economy continued to fall almost every month.

At first, the stock market was an important but not the dominant influence. By 1929, the market became the symbol of the nation 's prosperity and an icon of American business culture. Everything was going great; the stock prices reached what looked to be a permanently high plateau. In September of that year the market began to slide, but people ignored the sign. On October