Causes Of The Great Depression

A economic depression is a sustained economic recession with low production and sales with high rates of business failures and unemployment. On cause of the great depression was the stock market crash. On October 24,1929 investors began to rapidly sell stocks and stock prices dropped drastically. For people buying on margin they went completely broke. A second cause were government policies. After the Hawley-Smoot tariff other countries responded by putting high tariffs on American goods. Which in turn caused the decline In American goods sold abroad. This evolved Into the overproduction of goods. Wages stayed the same but prices went up. People stopped buying non essentials which caused factories to close, with lots of workers losing jobs.