Causes of the Great Depression Essay examples

Causes of the Great Depression Essay examples

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In the 1920s, American economy had a great time. The vast majority of Americans in 1929 foresaw a continuation of the dizzying economic growth that had taken place in most of the decade. However, the prices of stock crested in early September of 1929. The price of stock fell gradually during most of September and early October. On “Black Tuesday” 29 October 1929, the stock market fell by forty points. After that, a historically great and long economic depression started and lasted until the start of the Second World War. The three causes of the Great Depression are installment buying, uneven distribution of wealth and the irrational behavior in the stock market.
Installment buying serves as the first cause of the Great Depression. In the 1920s, a large number of American families purchased automobiles, refrigerators, vacuum cleaners and similar household products on credit. Many American simply did not have anywhere near enough cash to pay for all they had purchased. The money of many families was tied up making installments payments for three or four big-ticket items; this pre...

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