The Main Cause Of The Great Depression
Though many people think that the stock market crash of 1929 was the main cause of the Great Depression it actually was just the final straw that broke the camel’s back. Before the stock market crash America was already leading to deep turmoil. First America was loaning millions of dollars to World War I allies. Many of these loans were never paid which lead to the creation of private banks. These banks were used to the point of no returned which contributed to the Great depression as well as the distribution of income. The distribution of income caused a great gap between the low class and upper class which affected the market place as many lower class Americans were unable to buy large quantities of goods. Also the unemployment rate started
to rise even before the stock market crash do to an unstable economy. Finally, on October 29, 1929 due to the stress on private banks and the unpaid loans the market crash sending America into the Great Depression.
Government intervention had to be done in order for the Economy to correct its self during this time period. Many Americans were unemployed and needed assistants. Thanks to the New Deal which was passed by congress, many Americans were able to find temporary jobs and get back on their feet before World War II. The New Deal also created the CWA and CCC which were job agencies who helped Americans even find permeant jobs and assistance. Social Security also came from the New Deal which is still used today.