The Causes of the Great Depression
![]() Fig. 2. "Job hunters" during the Great Depression.
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There have been said to be a few causes of the Great Depression. In the years before the Great Depression, the regression of the economy had been slowly creeping up on America before they could even see the outcomes of their spending behaviors. The 1920s was a time of frivolous spending for Americans. The people would borrow more money from the banks than they could ever afford to pay back. The distribution of money started being even more diverse than it had been before between the middle-class and the rich, making the rich richer and the poor poorer. This unbalanced wealth distribution resulted in an unstable economy, which, ultimately, led to a stock market crash that caused the Great Depression. Another factor that is said to have contributed to the cause of the Great Depression was the drought that was occurring in the Mississippi Valley at the time. Several people were unable to repay their debts because of the lack of production and profit coming from their farms. Many moved more northward to find jobs in more economically stable states such as California (Jirage). All of these, causes of the Great Depression, brought America to a low spot that people could never have imagined it could have ever been at before.
When the Great Depression hit America, Americans discovered that they must cut back on expenditures in order to survive during those perilous times. This was a big change for many after the roaring 20s that had been almost the exact opposite circumstances for many. During the 20s, fashion, entertainment, and leisure had been more important to Americans than ever (Pandita). This made the crash into the Great Depression even harder than it would have been without all of the luxuries that came before. Click the link below to go to the next page of this essay: Life of Americans During the Great Depression |
![]() Fig. 3. The Crash of 1929: the Great Depression. October 28, 1929
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