One of the main reasons for the great depression is the stock market crash. In just 2 months stockholders lost more than 40 billion dollars. It slowly began to come back but it was not enough and the United States feel into the Great Depression.Next was banks closing down. In the 1930's there was over 9,000 bank closings. Bank deposits were uninsured and then as banks failed people just started losing their savings. Banks that didnt close were very unsure about the economy were not as willing to give out new loans. This led to less and less spending.As the stock market crashed many americans stopped buying things. This led us in a deeper depression because no money was getting pumped into the economy. With people not buying things american businesses started to fail as nobody was buying there products. The U.S. goverment created the Smooth-Hawly Tarrif. This tryed to help out the american businesses by raising tax imports. Then less and less trade between the U.S. and foreign countries which also hurt us.I think that if we would have told the public not to just hold on to there money or withdrawl there money out of banks it would have greatly helped our economy. Banks not as many banks would have closed and it might not have been as bad.
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