The main causes of the great depression
-the stock market crash 1929- a result of economic imbalances and structural failings, buying credit, buying on margin, and the agricultural recession are the main causes. A lot of people whent hey buy on credit they were spending money frely then they ranout of money because of the crash so then they couldn’t afford to pay it back. Margin millionairs went broke when the stock market crashed. The farmers could farm faster now but the prices were too low to sell.
- Bank failures- they failed because people had begun to lose their savings due to the deposits in the bank. They decided to be more careful about who they handed loans out to
- Reduction In purchasing across the board
- Drought condition- many crops had died
- American economic policy with Europe
- Long lasting impact- tariffs increased quickly, a lot of people were out of jobs, the social security system was set into place
- Impacts on the stock market crash- had a rippling effect throughout the economy and the nation, the businesses failed, there was more unemployment but more looking for jobs, that had forced the businesses to lowered they prices because consumers had less money
- How did the government help- the government begin solving the problems when Roosevelt became president? During the first day of his term he passed bank reform laws, emergency relief programs, and new agricultural programs,. Known as the “First New Deal”. This was intended to help the economy. So formed the agricultural adjustment Act which paid farmers to produce less.
- The second new deal. Helped getting unemployed youth job. Later trained them for relating jobs. The national labor relations act- this is focused on stopping employers from using intermediation to break up unions, as a result of wages of the ordinary person rose.
- WW2- as soon as the war began the new deal ended. The same year the us joined the war in 1914 the Great Depression ended. The reason the war ended it is because Roosevelt spent all the money necessary to win the war which put more money into circulation.
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