What Caused The Great Depression
The world has experienced many economic hardships, but nothing as extraordinary as the Great Depression. The Great Depression was a time in the 1930’s where the world faced many economic problems. Some of these included stock market crashes, overproduction, and The Dust Bowl of the 1930’s. Some causes were ,however,more relentless than others.These issues are what led to the economic downfall worldwide.
A dilemma that the world faced was a stock market crash which is a fall of prices across the economy. In the article ,Stock Market Crash of 1929 by A&E Television Networks states, “...production had already declined and unemployment had risen,” . This is establishing that due to this, many citizens lost their jobs which leads to poverty in many townships. Another piece of evidence the article states “Billions of dollars were lost, wiping out thousands of investors.” This justifies that money lost is paid through debt and as of the 1930’s, the economy already has a tremendous amount of debt to be indemnified and also again it is leading to many people getting unemployed. …show more content…
This is where businesses were making too much of their products. From this, the prices go up and people could no longer afford to purchase the item. In the article ,Causes of the Great Depression by Allison McNeill states, “By 1929 the stores had built up huge inventories of goods and stopped ordering from factories.” From this, factories were needing to cut back on production and cutting back on production means cutting back on employment. The article also includes that people lost their savings due to the Stock Market Crash,and people are demanding for more dietary needs instead of other goods made by businesses. This is what is known as Gross Domestic
A dilemma that the world faced was a stock market crash which is a fall of prices across the economy. In the article ,Stock Market Crash of 1929 by A&E Television Networks states, “...production had already declined and unemployment had risen,” . This is establishing that due to this, many citizens lost their jobs which leads to poverty in many townships. Another piece of evidence the article states “Billions of dollars were lost, wiping out thousands of investors.” This justifies that money lost is paid through debt and as of the 1930’s, the economy already has a tremendous amount of debt to be indemnified and also again it is leading to many people getting unemployed. …show more content…
This is where businesses were making too much of their products. From this, the prices go up and people could no longer afford to purchase the item. In the article ,Causes of the Great Depression by Allison McNeill states, “By 1929 the stores had built up huge inventories of goods and stopped ordering from factories.” From this, factories were needing to cut back on production and cutting back on production means cutting back on employment. The article also includes that people lost their savings due to the Stock Market Crash,and people are demanding for more dietary needs instead of other goods made by businesses. This is what is known as Gross Domestic