There are 5 main causes of the Great Depression: the stock market crashed in 1929, bank failures, people stopped spending money, taxes on imported goods, and drought.
On october 29, 1929, the stock market crashed, and the stockholders lost more than 40,000,000,000$. When the banks failed, they were not insured, and people lost all of their savings. Because people didn’t have any money, they stopped buying things, which made the situation worse. In an effort to boost the economy, the American government put high taxes on imported goods; this backfired, because European countries stopped buying American products. To top all this off, a massive drought in the Mississippi Valley cause a food shortage and many famers lost their farms.
A good brief summary of a rather complicated issue. Thank you.
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