Causes of the Great Depression

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The Great Depression was the worst economic slump ever in U.S. history, and one that spread to virtually the entire industrialized world. The depression began in late 1929 and lasted for about a decade. Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920’s.
Another reasons for the stock market crash was caused Farmers continued to produce more and more food due to technological advances likes the tractor. As production grew farm prices dropped. It was simply a matter of supply and demand. Also a big drought turned that portion of America into what was called “The Dustbowl.”
The theory was that an indicator of money and easy credit stimulated the economy. In 1927, the Federal Reserve Board further inflated the currency by creating several more billion dollars. People went into debt, and the prices of real estate and stocks skyrocketed. The policies pursued by Coolidge made the later stock market crash inevitable and depression inescapable.
Also, there was an uneven trade going on between the U.S. and the rest of the world. There were more exports than there were imports. This meant that the U.S. was loosing money and goods other than receiving.