The Great Derpession

The Cause of the vast Depression
The commodious Depression is the most primal economic event in American History. While it is astray believed that the crash of the stock market in October of 1929 was the cause of the Great Depression, there were many other factors and long-term causes that developed in the years prior to the depression.
One factor that conduct to the Great Depression was the over-production of goods and supplies, While the average works wages remained the same, the prices of the goods existence produced went up. Factories and farms continued to produce goods at the same rate plot of ground the supplicate for the goods was decreasing. As a result of the lower demand for goods, more and more workers became unemployed until about unrivalled force of Americans were out of work.
Another factor that led to the depression was the federal Governments economic policies. Presidents Harding and Coolidge advocated policies which reduced taxes and regulation; this led to monopolies being formed and an inequality of wealth and income in America, the richest one percent of the population would own about forty percent of the nations wealth.



Much of the boom of the 1920s was credit-driven, the federal Reserve Banks policies to allow banks with poor lending practices to have rise to power to credit led to an expansion of the capital supply and the deflation of the observe of the dollar. By the time the Federal Government tightened the regulations for lending money to banks, it was too late, and the depression was inevitable.
The stock markets role in do the depression was that with the booming economy in the 1920s, many companies and banks were place in over-priced stocks, many of the stock prices rose to fast and were valued at more than the actual value of the company. When the government tightened restrictions on lending, lending became scarce, prices began blood lineing, and companies began going bankrupt causing the value of the stocks to fall drastically and very fast. People began to...If you want to get a full essay, order it on our website: Orderessay



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