3 Causes of the Great Depression

List and define 3 causes of the Great Depression. You must fend for how this incident may have caused the GD and its effect on America and what was done to counter this. In the roaring 20s many a(prenominal) Americans lived beyond their means. nigh(predicate) 60% of the population lived at or below scantness level but this great new idea of loaning catnap 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 ready one industry in the country as state started acquire gold. The problem with banks lending this funds was that there were no safeguards in place. The banks had non yet learned the importance of aegis and collateral. They had to a fault not yet learned the importance of hold the touchstone of money they leant and to whom. During the Great Depression more than 9000 banks closed and millions of mass lost their life savings. When the banks closed people became terrified and halt spend as much. The drop in spending caused companies to lay 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.

some 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 comparable 1 percent of Americans controlled more than 50 percent of American Industry. The stock market was allowing p eople to buy stocks on margin. acquire stoc! ks 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 allow 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, set up it on our website: OrderCustomPaper.com

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