Causes Of The Great Depression In The United States

The Great Depressions was one of the worst economic downfalls in US history. The great depression all started from 1929 and lasted till 1939. Due to the economic meltdown it had affected Western economies but not only did affect the US it also affected other nations. It started in the US which experienced the worst end of the Great Depression. Although, many people believe that it began years earlier in Europe and that the US felt that they were immune to such a dramatic fall in the economy. What makes matter worst is that the US government did not have any policies to ensure that that US will not experience as much downfall as Europe. What caused the Great Depression was overproduction. The mass production was the cause of boom or bust. Demand could not simply keep it with production because many people have financed purchases of products with loans and credit and after the wall street crash it made it very impossible to pay off such debts. Overproduction was also the cause of agriculture economic crisis. By the 1920’s a lot of farmers were …show more content…
In October, mass panic saw the market lose a good percentage of its value before the trade market had begun. Black Tuesday people sold their stock en masse, on black Monday and Tuesday the market lost 30 billion, triggering the collapse of the stock market and with it much of America’s Economic Structure. Another cause of the great depression was the structure of America’s banking system. Thousands of small banks were unable to cope when millions of people withdrew their money en masse. 1930 a wave of banking closures went through the mid-eastern states of the US. Lending and credit dried up as result of banks selling assets, borrowing off other banks or even shutting down. Without access to credit people were forced to buy less