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What Are The Causes Of The Great Depression?

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There were many elements that led to the Great Depression like the stock market crash, bank runs, the dust bowl, and the new deal. The Great Depression was an economic downturn between 1929-1939. Many people lost their jobs and did not have enough money to keep a roof over their head. Only the rich could manage while the unfortunate grieved. Both the rich and poor were petrified, and the rich even concealed their money so no one could take it from them. The whole economy was get flustered so people just stopped spending their money unless it was something really important. One of the first things that led into the Great Depression was the stock market crash of 1929. Stocks are shares of a company that a person can buy. In the 1920s, the stock…show more content…
“These skyrocketing stock prices signaled trouble for the U.S. economy” (Causes of the Great Depression. This caused businesses and factories to fire workers because they lost money when the stock market crash and now since the economy is in fear people did not want to spend their money. In poor areas, schools were being shut down, which left about 300,000 children with no education. If children didn’t get any education then there would be even little hope for them to get a job to keep them financially stable. There was absolute chaos when people heard that the stock market had crashed, which led to bank runs. People did not trust banks anymore and wanted to get their money so they could make sure their money was in safe hands. When one of the first bank runs occurred in Nashville, Tennessee, this kick started a movement of bank runs. The banks only carried a portion of the depositor’s money and would provide the rest to borrowers. So when people came to the banks for their money, the banks did not have all of it. The banks could only give a small amount of money out since most of the people wanted their money back, but the banks could not meet the expense to give everybody their full
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