Reasons: The Causes Of The Great Depression

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The Great Depression was a significant period of economic downfall that roughly occurred between the years of 1929 and 1939. While there cannot be one specific event to blame for the cause of this depression, there are some large scale events that led to the result of this depression. Today economists study the event in great detail in an attempt to place government regulations over the economy and prevent a time period of such chaos from ever occurring again. When looking towards the true causes of the Great Depression many first glance at the stock market crash of 1929. While this event played a large role in the causes of this depression, many people would agree that the event more so triggered it rather than caused it. The stock market crash resulted in many investors …show more content…

As a result the economy found a huge drop in consumer demand and credit. Businesses began to fail as they no longer could receive regular cash inflow and people stopped saving their money. Failing businesses led to budget cuts and a huge rise in unemployment. Many people lost their jobs and were out of work. The drop in consumer credit began to lead to bank failure. This public scare caused people to rush into banks and withdrawal as much money as they could. Banks did not have the funds at hand to give everyone their money back and many faced foreclosure. Even more people began to lose their money from the foreclosed banks all around the nation. The foreclosure of banks in the depression provides a good example of changes made in the government in an attempt to prevent the disaster in the future. Today people are ensured up to $250,000 of their money in accounts and banks are required to keep a certain percentage of the people’s money at hand. While the failure of the stock market and banking system were cause through economic downfall, other disastrous events were

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