Their were many causes of the Great Depression. But, one main reason was the stock market crash of 1929 was a huge reason why. Now I will tell you why.Stock Market Crash of 1929Well, the 1920's was a time of wealth. Capital is the tools needed to produce things of value out of raw materials. A example is machines, you build machines so get products that you can use in daily life or trade with other countries. Well, the main source of capital of the 20's was stocks. Which some stock is very unconsistent. In the 20's the stock market took a huge increase in the market never been seen in the U.S in its time. "What comes up must must come down," famous lyrics by Tom Petty. That is what happened to the stock market. It hits its high then it hits rock bottom. It dropped dramatically 80% which isn't a good thing. When new stock came out. Noone bought it because they were scared. This lead to the Great Depression.Great DepressionThe Great Depression was a very depressing time obviously. Which many things lead up to this very sad time. Like I just talked about the Stock Market Crash was one of those reasons but, their are many reasons. Many banks failed. Close to 10,000 of them. So those people from those banks lost their entire savings. Another reason was not purchasing as much items after the stock market crash. Which to solve a stock market crash everyone as to keep on spending. Thats what we learned from this piece of history. This leads to reduce production. Which then you lose jobs. Just like the food chain. When you take one source of food it takes other animals with it. The entire workforce 1/4 of them lost their job.Their are also many other reasons how the Great Depression started but, these are the main reasons. So to help not get another Great Depression like this. Like NOW!!! Keep on spending. It helps economy a ton.
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