Answer:
5 causes
Step-by-step explanation:
Stock Market Crash of 1929 - Many people assume, incorrectly, that the stock market crash that happened on October 29, 1929 is synonymous with the Great Depression. Indeed, it was one of the primary causes of the Great Depression. Within two months after the October catastrophe, investors had lost more than $40 billion. Even while the stock market started to recover some of its losses by the end of 1930, it was insufficient, and America entered what is now known as the Great Depression.
2. Bank Failures - Over 9,000 banks collapsed during the 1930s. Because bank deposits were uninsured, when banks collapsed, individuals simply lost their money. Uncertain of the economic situation and fearful for their own existence, surviving banks reduced their willingness to provide new loans. This aggravated the issue, resulting in decreasing spending.
3. Axed Purchasing Across the Board - As a result of the stock market fall and worries of more economic troubles, folks from all socioeconomic groups ceased purchasing. This resulted in a decrease in the amount of things produced and, therefore, a decrease in the workforce. As individuals lost employment, they were unable to pay for products purchased on installment plans and their property was seized. Inventory started to increase at a rapid rate. The unemployment rate increased to 25%, implying even less expenditure to help relieve the economic crisis.
4. American Economic Policy with Europe - In 1930, when firms started to collapse, the government enacted the Smoot-Hawley Tariff to aid in the protection of American enterprises. This imposed a hefty import tariff, resulting in decreased commerce between America and other nations, as well as some economic retribution.
5. Drought Conditions - While not a direct cause of the Great Depression, the drought in the Mississippi Valley in 1930 was severe enough that many farmers were unable to pay their taxes or other bills and were forced to sell their farms at a loss. The region was dubbed "The Dust Bowl." The Grapes of Wrath by John Steinbeck dealt with this subject.