There are various reasons that led up to the Great Depression. It started on October 29th 1929; this was also known as Black Tuesday. Black Tuesday was when the stock market crashed. The stock market crash was one thing that led to the Great Depression. Stock holders lost more than 40 billion dollars from October through December.A bank failure was another main reason for the Great Depression. People began to lose savings.Business failures and job losses had a big impact on the Great Depression as well. People stopped buying goods. This led to problems in the workforce. With People losing jobs they could no longer afford what they had purchased using installment plans. This the lead the unemployment rate to rise.Trade with foreign countries was affected greatly and played a part in the Great Depression. The congress passed the Hawley-Smoot Tariff Act to protect farmers and manufacturers from foreign competition. This created a high tax for imports, and led to less trade in the Americas. This then mad the American economy collapse and Europe’s economy suffer as well.Although the drought that was in the Mississippi Valley was not a direct impact on the great depression it did affect it. Many farmers could not pay their taxes or loans and had to sell their farms for a lower value.
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