Today is a workday. I am working on the causes of the great depression.
There were many causes of the Great Depression. One of them was the stock market crash of 1929. This was one of the major causes that led to the great depression. A couple of months after the crash in October, stock holders had lost more than $40 billion. Though the stock market regained some of its losses, it was not enough by the end of 1930.
Another reason was bank failures. During the 1930 over 9,000 banks failed. Deposits were uninsured and as banks failed people lost their savings. The banks that survived, were unsure of the economic situation concerned for their survival stopped being as willing to create new loans.
A third reason was the reduction in purchasing across the board. Individuals from all classes stopped purchasing items. This led to a reduction in the numbers of items made and this affected a reduction in the workforce. When people lost their jobs, they were unable to pay for items they had bought through installment plans and these items were repossessed. The unemployment rate rose above 25%, and a course this meant less spending to help the economic situation.
American Economic Policy with Europe was a fourth reason. The government created the Smoot-Hawley Tariff to help protect American companies in 1930. It charged a high tax for imports. This led to less trade between America and other countries.
The last main reason was not a direct cause of the great depression. There was a drought that occurred in the Mississippi Valley in 1930. This was called the Dust Bowl in that area. Many people could not pay their taxes or other debts and had to sell their farms for no profit.
http://americanhistory.about.com/od/greatdepression/tp/greatdepression.htm
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