What Caused The Great Depression

The Great Depression was the longest and most severe economic fall in the history of the western industrialized world. The timing of the Great Depression in most countries started in 1929 and lasted until the late 1930s. Millions of people lost their jobs and farmers and businesses went bankrupted. Modern nations and those storing food and raw materials were affected one way or another.
The Depression originated in the United States in 1929 as what was seemingly an ordinary recession. Amount of goods fell slightly, prices dropped, and no one really noticed anything unusual. But then an event occurred: the Great Stock Market Crash of October, 1929. This event was not a cause of the Depression, but was hardly the first sign of the disaster
Recession in spending and supplying led factories and other businesses to slow down manufactures and begin firing their workers. For those who were lucky enough to stay employed, wages were falling and buying power decreases. Americans who were forced to buy on credits fell into debts and improvement climbed steadily. The stock market crash was not the cause of the Great Depression, but it did step up the global economic downfall of which it was also a warning.
However, the causes of the Depression do not all center on the stock market. The causes is believed to have come from tight money behavior of American consumers. World War I had left many lingering effects, in countries other than the United States. Many countries were heavily in debt, with no way to pay anything off. Farmers who had been struggling with their own economic depression due to the drought and falling food prices couldn’t afford to harvest their crops and were forced to leave their crops
During the first 10 months of 1930 after the stock market crash, 744 banks failed. Altogether, 9,000 banks failed during the 30s. By 1933, $140 billion disappear through bank failures. Two days after taking oath of office, President Franklin D. Roosevelt declared a four day “bank holiday” which all banks would close down so that the Congress could pass a legislation. During this time, Roosevelt presented the new Congress with the Emergency Banking Act. The law allowed the President through the Treasury Administration to reopen banks that are stable and boost those that are not. As time went on, the state of the economy became worse and worse. Thousands of people were unemployed, and many did not have enough money to feed their families well. About 4 million Americans looking for jobs could not find a job and the number rise up to 6 million by 1931. While the country’s industrial manufactures had dropped by half; breadlines, soup kitchen, and homeless people had become more and more common in America’s town and