Explain the causes of the Great Depression
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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 causesthat great dipression.
The banking industry as a whole after the stock market crashed was going bankrupt due to not being able to carry the “bad debt” that was created from using customer money to buy stock. Because the banks were out of money, they were unable to cover customer withdrawals from their bank, causing many bank customers to lose all of their savings. With the uncertainty of the future of the banking industry, many people withdrew all of their savings, which caused more than 9,000 banks to close their doors and go out of business (Kelly). Due to the effects of the Great Depression, and the collapse of the banking industry, the government created regulations to prevent similar failure in the future. For Example, the SEC, (or Securities Exchange Commission), which regulates the sell and trade of stocks, bonds and other investments was created as a result of The Great Depression. The FDIC (or Federal Deposit Insurance Corporation), was created to insure bank accounts so that that the consumer would be protected if the bank were to go out of business (Kelly). The Great Depression's effect on the banking industry led to many useful changes to the banking industry and helped restore confidence in banks in the American people.
The next major factor that contributed to the Great Depression was the reduction of goods being purchased during the time period.
hope it helps u (:
The banking industry as a whole after the stock market crashed was going bankrupt due to not being able to carry the “bad debt” that was created from using customer money to buy stock. Because the banks were out of money, they were unable to cover customer withdrawals from their bank, causing many bank customers to lose all of their savings. With the uncertainty of the future of the banking industry, many people withdrew all of their savings, which caused more than 9,000 banks to close their doors and go out of business (Kelly). Due to the effects of the Great Depression, and the collapse of the banking industry, the government created regulations to prevent similar failure in the future. For Example, the SEC, (or Securities Exchange Commission), which regulates the sell and trade of stocks, bonds and other investments was created as a result of The Great Depression. The FDIC (or Federal Deposit Insurance Corporation), was created to insure bank accounts so that that the consumer would be protected if the bank were to go out of business (Kelly). The Great Depression's effect on the banking industry led to many useful changes to the banking industry and helped restore confidence in banks in the American people.
The next major factor that contributed to the Great Depression was the reduction of goods being purchased during the time period.
hope it helps u (:
rohitkl:
bro is there is only one cause for the Great Depression
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ᴛʜᴇ ɢʀᴇᴀᴛ ᴅᴇᴘʀᴇssɪᴏɴ ᴡᴀs ᴀ ʀᴇsᴜʟᴛ ᴏғ ᴍᴀɴʏ ғᴀᴄᴛᴏʀs: ᴘʀᴏsᴘᴇʀɪᴛʏ ɪɴ ᴛʜᴇ ᴜsᴀ ᴅᴜʀɪɴɢ ᴛʜᴇ 1920s ᴄʀᴇᴀᴛᴇᴅ ᴀ ᴄʏᴄʟᴇ ᴏғ ʜɪɢʜᴇʀ ᴇᴍᴘʟᴏʏᴍᴇɴᴛ ᴀɴᴅ ɪɴᴄᴏᴍᴇs. ɪᴛ ʟᴇᴅ ᴛᴏ ʀɪsᴇ ɪɴ ᴄᴏɴsᴜᴍᴘᴛɪᴏɴ ᴀɴᴅ ᴅᴇᴍᴀɴᴅs. ᴍᴏʀᴇ ɪɴᴠᴇsᴛᴍᴇɴᴛ ᴀɴᴅ ᴍᴏʀᴇ ᴇᴍᴘʟᴏʏᴍᴇɴᴛ ᴄʀᴇᴀᴛᴇᴅ ᴛᴇɴᴅᴇɴᴄɪᴇs ᴏғ sᴘᴇᴄᴜʟᴀᴛɪᴏɴs ᴡʜɪᴄʜ ʟᴇᴅ ᴛᴏ ᴛʜᴇ ɢʀᴇᴀᴛ ᴅᴇᴘʀᴇssɪᴏɴ ᴏғ 1929 ᴜᴘᴛᴏ ᴛʜᴇ ᴍɪᴅ-1930s.
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