Major Causes Of The Great Depression

The great depression of the 1930s was known as the biggest and longest economic slump. Many lives were affected by the depression and many people were left unemployed and others homeless. This economic catastrophe begun in the United States and overtime it spread all around the world. European countries such as Great Britain and Germany were facing large debts after the First World War and turned to America for help in paying off those debts. This resulted in a financial crisis worldwide. It was believed that the depression started with the Wall Street crash that occurred on the 29th of October in 1929, also known as black Tuesday. The depression lasted a decade until 1939, right before the Second World War. The stock market crash, bank failures and unemployment are all different factors that played a major role in the cause of the depression.

The great depression caused a major decline in economies and in most businesses due

Events like the stock market crash affected banks which later on began to fail which then led to a high rate of unemployment in the United States. Although the depression was a major problem in international economies as well, it was primarily caused from the American economy. After the stock market crash, banks were no longer capable of lending money to the citizens which created difficulties for the American economy. Most businesses were failing and people were struggling to support themselves and their families. If the economy did not fail in America during that time, then depression would not have hit other countries worldwide. It became difficult for the United States to lend money to Germany after the war because