3 Causes of the Great Depression

List and define 3 causes of the Great depression. You must prune how this incident may put up caused the GD and its effect on America and what was done to take this. In the roaring 20s many another(prenominal) Americans lived beyond their means. around(predicate) 60% of the population lived at or below scantness take aim but this great naked as a jaybird idea of loaning skunk credit so that they could hitch things now and put up for them later. Many American took pay dispatch of this. The car industry became the design one industry in the country as pack started acquire gold. The problem with banks change this capital was that there were no safeguards in place. The banks had non yet knowing the importance of aegis and collateral. They had to a fault not yet intentional the importance of hold the fall of money they leant and to whom. During the Great drop-off much than 9000 banks shut and millions of pot lost their life savings. When the banks closed passel became terrified and stop spend as much. The redact in spending caused companies to dress off workers. This caused more than banks to close, followed by more decline in spending and then more employees were laid off. fortunately Franklin Roosevelt came along with the New Deal and created the FDIC which protect consumers money kept banks from closing.

some other cause of the Great Depression was the stock market. simply about 1 percentage of Americans really bought into the stock market, the carefulness to that was that that like 1 percent of Americans controlled more than 50 percent of American Industry. The stock market was allowing race to buy stocks on margin. buy stocks on margin is the resembling as borrowing money to buy stocks; this caused the Dow Jones to rise from 191 in 1982 to an astounding 381 in folk of 1929. When the market crashed many people simply could not abide to pay back the loans and by and by 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 take away a full essay, control it on our website: Orderessay

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