The Main Causes Of The Great Depression

In 1929 prices on the stock exchange continued to spiral upward and create an illusion of paradise and riches in the form of paper money. British raised their international interest rate to bring back money to pay American debt off. Foreign investors and others began to dump their investments, and a frenzy of selling of stocks proceeded. The losses were huge. Stockholders had lost 40 billion dollars. By the end of 1930 four million workers were without jobs. If there were jobs at all, the wages were decreased a great deal. Suicide rates were the most they had ever been. over 5000 banks collapsed, with tens of thousands of ordinary people's money. Thousands and thousands of people lost their homes and farms. There were many soup kitchens to feed the …show more content…
There were less babies being born, and much mental depression felt by many. The great Depression was caused by overproduction by both farm and factory. America was producing more than was able to be consumed. Much of the money was going to the already wealthy, and not enough into the working class. There was also over expansion of credit through installment-plan buying, which made for overproduction. People were putting themselves into debt. There was also many machines doing the work of people, so less people were needed to work. Britain and Europe were in a depression as well, which didn't help America at all. Because of the Hawley Smoot tarrif, there was less international trade, and much aggression toward the U. S. This was the reason of the Great crash of the 1930's, and the Great Depression. It reaked havoc on the