Causes of the Great Depression

2/9/12 Causes of the Great Depression in the the Statess In 1929 the United States of America entered an era of depression due to scummy government and presidential polices, unsound economic policies, and a lassiez faire burn down of government. As America entered depression so did Latin America and Canada due to their dependence on American consumerism and exportation of goods to America. oer time these factors led to the 1929 root market crash which change the whole world including Latin America, United States and Canada. One of the many a(prenominal) factors that led to the Great Depression was the unequal concentration of indicator in the American economy. The government supported big businesses and banks to a greater extent than the everyday labors. Therefore, the economy relied heavily on only a few industries, nonably the wrench and automobile industry. When the automobile and construction industries declined due to low demand and overproduction the economy was naughtily hurt. People did not have the income to afford many things and continued to buy on credit anyways. Another major(ip) problem was the credit social organization of the economy. After the war europium no longer needed crops from the U.S. This led farmers into debt; prices dropped and there was short(p) to no demand of the overproduced agricultural crops.

Small banks were in turn over because customers were defaulting on their loans and big banks had invested much of its money in the stock market which eventually collapsed and the banks lost much of their money. The international debt structure was also a contributing factor to the Great depression. At the end of World War l many European nations owed U.S. banks large sums of money. American banks made large loans to European countries to give up them to pay get through their debt to other nations so that they could pay off Americas afterwards. This only led to an additional 10 billion dollar debt pile up. Hoover, who was the president at the time, did not believe the federal government should... If you want to get a full essay, order it on our website: Ordercustompaper.com

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