Question

Explain any four factor responsible for great depresion of 1929

Answer 1

The effects of the Great Depression were huge across the world. Not only did it lead to the New Deal in America but  more significantly, it was a direct cause of the rise of extremism in Germany leading to World War II.  

1. Stock Market Crash of 1929 - Many believe erroneously that the stock market crash that occurred on Black  Tuesday, October 29, 1929 is one and the same with the Great Depression. In fact, it was one of the major causes that  led to the Great Depression.
2. Bank Failures - Throughout the 1930s over 9,000 banks failed. Bank deposits were uninsured and thus as banks  failed people simply lost their savings.
3. American Economic Policy with Europe - As businesses began failing, the government created the Smoot-Hawley  Tariff in 1930 to help protect American companies. This charged a high tax for imports thereby leading to less trade  between America and foreign countries along with some economic retaliation.
4. Drought Conditions - While not a direct cause of the Great Depression, the drought that occurred in the  Mississippi Valley in 1930 was of such proportions that many could not even pay their taxes or other debts and had to  sell their farms for no profit to themselves.

Answer 2

Explain the two factors responsible for the Great Depression in the world in 1929. The Great Depression of 1929 was caused by a combination of several factors : Firstly agricultural overproduction remained a problem. This was made worse by falling agricultural prices.Jun 26, 2016