What are the main factors that cause the Great Depression?
The Great Depression was a worldwide tragedy in which many countries was affected. Many historians have came up with many reasons that might have caused the depression. However there were 3 main big factors that many historians have cited as important. The Great Depression was caused by the stock market crashing, bank failure, and reduction in spending money.
The first significant event that caused the Great Depression was the stock market crash on the "Black Tuesday", October 29, 1929. This event caused a dramastic fell in chair prices and only 2 month later after the event, stockholders had lost more than 40 billions dollars. In 1930 altough the stock market began to rise, in 1932 the stock market fell 89 percent from its price in 1929. Many historians believe that this event lead to the Great Depression because this event destroyed alot of the people's confidence in investing. As a result many people withdrew money from their accounts causing many banks to become bankrupt. As banks failed and became corrupt, many banks tried to raise money by calling their loans back from people who didn't have enough time and funds to repay the money.
(...) Another main factor that caused the Great Depression was the reduction in spending money of people in all class. Because of the stock market crash and the bank failure many people chose not to invest and and many consumers spent less money on consumer goods. This caused a reduction in the number of items produced. Causing more unemployment around the world and less availability of consumer goods. As the unemployment increased people spent even less money so more and more people were left jobless.
Fonte: http://isemodernworldhistorygrade9.wikispaces.com
The Great Depression was a worldwide tragedy in which many countries was affected. Many historians have came up with many reasons that might have caused the depression. However there were 3 main big factors that many historians have cited as important. The Great Depression was caused by the stock market crashing, bank failure, and reduction in spending money.
The first significant event that caused the Great Depression was the stock market crash on the "Black Tuesday", October 29, 1929. This event caused a dramastic fell in chair prices and only 2 month later after the event, stockholders had lost more than 40 billions dollars. In 1930 altough the stock market began to rise, in 1932 the stock market fell 89 percent from its price in 1929. Many historians believe that this event lead to the Great Depression because this event destroyed alot of the people's confidence in investing. As a result many people withdrew money from their accounts causing many banks to become bankrupt. As banks failed and became corrupt, many banks tried to raise money by calling their loans back from people who didn't have enough time and funds to repay the money.
(...) Another main factor that caused the Great Depression was the reduction in spending money of people in all class. Because of the stock market crash and the bank failure many people chose not to invest and and many consumers spent less money on consumer goods. This caused a reduction in the number of items produced. Causing more unemployment around the world and less availability of consumer goods. As the unemployment increased people spent even less money so more and more people were left jobless.
Fonte: http://isemodernworldhistorygrade9.wikispaces.com
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