There is not just one thing that caused the stock market crash and great depression. Many things combined together over a period of time caused both. The causes were both national and world wide. There is no list of specific reasons for them but here is the top three reasons that I found. I believe if the stock marketed had not crashed the Great Depression would have never happened.1. Stock Market Crash of 1929Several sites said that the Stock Market Crash on October 29, 1929 was one of the main causes of the Great Depression.This day is know as Black Tuesday. On that tuesday the stocks prices fell and continued to fall for the next two months. This crash is said to been caused by the decade Roaring Twenties. This time was a time of wealth and fortune. People during this time bought and sold stocks like crazy. On Black Tuesday 16 million shares were traded in the matter of hours. This caused America to enter the time period of the Great Depression.
2. Bank FailuresDuring the 1930s, 9,000 banks calapused. During this time bank deposits unsteading and people lost their savings when a banked failed. Banks that did make is through the depression did creating new loans. This caused the stock market to drop even more.
3. Reduction in Purchasing Across the BoardDue to the stock market and banks no longer loaning out money people stopped buying unessary items. When people lost their jobs they could no longer pay their payments for items purchased during the 1920s. The unemployment rate raised to 25% which caused the economic situatution to become worst.
This is the cycle America had gotten into had a very hard time of getting out of.Source OneSource Two
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