cause of the Great Depression between 1929 to 1932 in the US
Answers
Answer:
The Great Depression started in the United States after a major fall in stock prices
Explanation:
The stock market crashed in 1929. During the 1920s the U.S. stock market underwent a historic expansion. It lasted almost 10 years! and affected nearly every single country in the world since they depended on the USA for loans and other financial items. It was marked by steep declines in industrial production and in prices, mass unemployment, banking panics, and sharp increases in rates of poverty and homelessness.
The depression of 1873 ended five years later after which many railroads were built. The Production was revolutionized, thanks to old Henry Ford [ Founder Of Ford Motors ]. All kinds of machinery was made on assembly lines.
Answer: There were several factors that had caused the ‘Depression’. Some of those were as follows:
(i) Agricultural Overproduction. Agricultural overproduction remained a problem. Falling of agricultural prices had made it even worse. As the prices fell, the agricultural income declined. To meet this situation, farmers brought larger volume of produce to the market to maintain their small income. The excessive supply couldn’t be sold due to lack of buyers and farm produce rotted.
(ii) US Loan Crisis. In the mid-1920s, many countries financed their investments through loans from the US. The overseas lenders panicked at the first sign of trouble. Countries that depended crucially on US loans faced an acute crisis due to the withdrawal of US loAnswer: It led to the failure of major banks and collapse of currencies such as the British pound sterling. In Latin America and elsewhere, it intensified the decline of agricultural and raw material prices. By doubling import duties, US gave another severe blow to world trade.