What were some of the causes of great depression?

Great depression was the worst economic crisis in the history of the United States and brought one of the worst economic states in the modern history of the world. There is no agreed list of causes of great depression, partly because there were simply so many different causes. Many groups have also been and remains a desire to blame other groups, and so many possible causes are strongly questioned. With this, however, it is possible to find a number of main reasons on which at least most people can agree. Extremely wealth was created, but this wealth was distributed extremely unevenly throughout the society, both in terms of class differences and between different sectors such as agricultural workers and industrial workers. Although many people hate it, it is very likely that one of the main causes of great depression was this difference in wealth. 1929, approximately 0.1% of the richest Americans held nearly 35% of all savings in the United States and more than 80% of Americans had no Ú at allscanty.

Legal structures established at that time helped maintain this imbalance. The taxes were drastically reduced, while the richest millionaires saw their tax burden to reduce to a third of what it was in the early 1920s. At the same time, laws were approved to protect the lower class of the United States, such as the 1923 Supreme Court's decision that the minimum wage Act was actually unconstitutional.

At the same time, the stock market increased higher and higher, and more and more and more wealth began with this market. When the stock market crashed in 1929, it set the land for massive economic collapse and was undoubtedly one of the primary depression. Between the October crash and the end of the year, the stock market lost more than $ 40 billion in the US (USD), which announces the onset of great depression.

When the stock market crashed, the faith of people in the economy. One of the big causes inElké depression was this lack of confidence in a system that led people to simply stop buying things. When people stopped shopping, businesses stopped needing to create things, which led them to reduce them, which meant the unemployment had risen sharply. This massive unemployment was another cause, and more than one of four Americans had no work on its peak.

in banks at the beginning of the 30th years. Banks in the United States were uninsured, which means that in the case of failure they were largely left. More than 9,000 individual banks collapsed during the 30th years and, when they collapsed, they took with them people's savings. Without the established federal insurance system for the protection of these assets, the large number lost everything they had. Bank disorders have also left surviving banks frightened from the future, so they have become less and less likely to lend money. New businesses and individuals could not find funds.

In response to these many causes of great depressionThe government passed brutal laws to try to protect US companies on the international market. As a result, import taxes have undergone roofs and foreign countries have ceased to trade in the United States and in many cases actively retired against American politics with their own protectionist policies.

There were also other causes, from numerous unsuccessful policies established by the government to try to avert the crisis, to natural disasters such as Mississippi drought from 1930. Together with all these small reasons, and the United States continued to attract.