What Caused The Great Depression

1728 Words7 Pages
The Great Depression was one of the worst Economic Failures in United States History. In 1929 the Unemployment went to it’s lowest point before the Wall Street crash. On October 28 1929 the Stock market Crashed resulted in a total of $30 Billion Dollars with 14 Billion being lost on October alone causing many of the businesses to go Bankrupt or lead to a downsize of their company 's . By 1930 Unemployment reached 8.9% average for the year causing many people to stealing or starving to death. In the June 17, 1930 The Smoot-Hawley Tariff was passed to attempting to protect American Businesses and Manufacturing from Foreign competition. The Tariff had little impact on the United States Economy and pulled Europe deeper in the Great Depression.…show more content…
The Great Depression started as a Recession, but with policy mistakes by the federal government with the Federal Reserve caused money supply to shrink which made the Recession worse, causing the Economy to drop even further which lead to the depression. Banks failures in the 1930’s caused over 9,000 to close, and surviving banks were less willing to grant loans because they were more concerned about their own survival. Reduction of buying materials all around the country which caused less products being built which lead to a shrink of the work force across the USA. The American Economic policy for Europe lead to much less trade between the USA and Other Foreign Countries. Drought in the Mississippi Valley made it extremely hard for Farmers to pay bills and taxes which lead to the Farmers selling their lands and Farms for little to no profits for themselves. The Outcomes of the Great Depression lead to a less likely chance of another Great Depression to occur. New national and international trading and banking rules were put in place to prevent another stock market crash and another Great Depression. Roosevelt 's New Deal plan allowed for the government to have an expanded role in people 's lives and long after the Great Depression. A large group of people left their farms, which caused a larger Urban Population than Rural population. After the great Depression…show more content…
The bank runs impacted Society a variety of ways. People who lost their jobs due to the great depression which lead to large amounts of people to starve to death or go to a life of crime. Prices for common foods like bread and milk increased dramatically due to inflation caused by the Great Depression. Bank runs were caused by multiple things to eventually lead to the great depression. The main reason for the bank runs were because the people who had money in the bank wanted there money out as soon as possible. Before the Great depression and the Bank runs there were no banking regulations or government intervention in banking, so no banking regulations lead to banks to do business openly and differently than they do today. The another main reason for the Great Depression was that many of the Banks failed which lead to people losing almost all of their money in the Bank and Stock Markets. The outcomes of the Banking collapse made a less likely chance of the banking runs to happen again. The end of the bank runs and Great Depression resulted in the government to becoming more involved in the Banking and the Economy which lead to more restrictions on banking and the
Open Document