What Caused The Great Depression Dbq

The Great Depression was a complex event caused by a variety of factors. The six factors of the Run on the Banks, the Stock Market crash, the uneven distribution of wealth, problems for business and industry, problems for farmers, and the overuse of credit all played a role in the start of the Great Depression. All of these factors were an important factor in helping start the Great Depression. However, the overuse of credit was the most important factor of them all because it led to people relying on loans, too many payments for the consumer to adequately keep up with, and the economy eventually drying up once the influx of money stopped.

Several factors contributed to the Great Depression in different ways. For example, the Run on the Banks, as shown in document E and H was a major

There were far too many independent banks during the period of the Great Depression, and the problem with the surplus of independent banks was the lack of support they could provide each other. The Run on the Banks resulted in the fall of banks, and an overall lack of confidence in the banking system. The overuse of credit in the economy helped trigger the run on the banks by people taking out loans from banks and then not being able to afford the continual payments, leading them to withdraw their money and shut down the banks. The Stock Market Crash was also a major factor in the start of the Great Depression. People who were buying into the stock market were gambling their money into the stock market in the hopes of making a quick profit (B). During this time period, the stock market would not have been affordable for the average person and would be considered a luxury. Normal Americans would have to buy stocks on loan if they wanted to invest. Buying stocks on loan is a form of credit, as you would be taking money out of the banks with the understanding that you would need to pay it back later. The uneven distribution of wealth was another major