Question

The Great Depression was a worldwide economic disaster.

Many factors weakened the U.S. economy in the years
before the Depression. American consumers took on high
levels of debt to buy luxury goods, and stock speculators
borrowed money to invest in the market. The country also
faced dust storms that devastated crops and destroyed
rural economies. These factors contributed to the crash of
the U.S. stock market in 1929. The crash led to bank
failures and widespread unemployment. This crisis
eventually helped Franklin Roosevelt win the presidency
and implement his New Deal programs.
According to the passage, what were the primary causes of the Great
Depression?

Answer 1

The Great Depression was caused by a combination of consumer debt, speculative investments, an inflated stock market, environmental disasters, and problematic banking practices. The 1929 stock market crash signaled the downturn but was not the sole cause. The economic crisis led to the New Deal implementation under Franklin Roosevelt.

Step-by-step explanation:

The Great Depression was the result of a confluence of factors, rather than a single event. According to the passage, high levels of consumer debt, speculative investments through borrowed money, an overinflated stock market, disastrous environmental conditions such as dust storms, and banking practices all contributed. Additionally, failures in international economies, poor distribution of income, and a lack of public confidence exacerbated these issues. The stock market crash of 1929 notably signaled the beginning of the downward economic spiral, resulting in bank failures and widespread unemployment, but it was not the lone cause. This crisis set the stage for Franklin Roosevelt's victory in the presidential election and the subsequent implementation of the New Deal programs aimed at economic recovery.