The+Great+Depression

= = =//**The Great Depression**//=

//**5 causes of the Great Depression**//
//**1. Stock market crash of 1929**// //**2. Bank failures**// //**3. Reduction in purchasing across the board**// //**4. American Economic policy with Europe**// //**5. Drought conditions**//

//**1 or all of these events lead to the Great Depression. October 29, 1929 was when the stock market crashed that lead to stockholders losing more than $40 billion dollars. In the 1930's 9,000 banks failed making bank deposits uninsured and people losing there savings accounts. Banks that didn't go under were sketchy of loaning money to people not knowing what the future held. So, without the loans people were spending less and less. As people stopped purchasing items merchandise stopped being made which made the workforce drop. As more and more jobs were lost people were losing items they couldn't pay for which brought on repossession's. Unemployment rose to 25% which meant less and less spending. High taxes for imports lead to less trade between America and foreign countries. The drought conditions in the Mississippi Valley was not a direct effect of the Great Depression but it didn't help any. People had to pay there taxes and other debts but instead was forced into selling there farms for no profit at all.**//





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