3 Causes of the Great Depression

List and define 3 causes of the Great Depression. You must cut back how this incident may have caused the GD and its effect on America and what was done to counter this. In the roaring 20s some Americans lived beyond their means. just about(predicate) 60% of the population lived at or below scantness aim but this great new idea of loaning visual sense credit so that they could get things now and put up for them later. Many American took advantage of this. The car industry became the freewheel one industry in the country as mass started acquire gold. The problem with banks lending this silver was that there were no safeguards in place. The banks had non yet learned the importance of aegis and collateral. They had excessively not yet learned the importance of hold the numerate of money they leant and to whom. During the Great Depression more than 9000 banks closed and millions of good deal lost their life savings. When the banks closed people became terrifie d and stop spend as much. The drop in spending caused companies to worldly off workers. This caused more banks to close, followed by more decline in spending and then more employees were laid off. fortunately Franklin Roosevelt came on with the New Deal and created the FDIC which protected consumers money kept banks from closing.

other cause of the Great Depression was the stock market. simply about 1 percentage of Americans actually bought into the stock market, the carefulness to that was that that equivalent 1 percent of Americans controlled more than 50 percent of American Industry. The stock market w as allowing people to buy stocks on margin. ! purchasing stocks on margin is the same as borrowing money to buy stocks; this caused the Dow Jones to rise from 191 in 1982 to an astounding 381 in family line of 1929. When the market crashed many people simply could not throw to pay back the loans and subsequently lost everything. Because of investors losing money many were forced to sell off their companies. Selling these companies go by to more unemployment....If you want to get a full essay, reign it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay