Three Main Causes Of The Great Depression

881 Words4 Pages
THE GREAT DEPRESSION BY: JASMINE SARVAS HISTORY 20 ESSAY January 14, 2011 THE GREAT DEPRESSION The Great Depression came about because of three main causes, in my opinion these three causes were not properly dealt with which could lead to the United States falling into another depression similar to the one in the 1930s. The first obvious cause was the deflation and inflation within the economy in the United States. The cause that immediately followed was the demand for product. This led to the last cause which was unemployment because of the nation being over loaded with product and lack of money. Most people think that the Great Depression started with the stock market crashing and it changed the way United States worked.…show more content…
Due to the serious lost of employment in the United States the people are faced with stress of debt and no income to support their families. The banks and lending institutions are over extended and pressured because of the government and nation's people have taken out loans to maintain a kind of life style which they can't afford. People, businesses and now the lending institutions are all going bankrupt. People can't afford food let alone paying a mortgage on their homes to the lending institutions. The number of products imported from other counties has increased over the years and exports have seriously decreased. So, it seems that the United States finds itself in a very similar situation as in the Great Depression of the 1930s. The government didn't learn from their mistakes made back then therefore the economic situation has returned. Instead they find themselves with an economy overloaded with product, financial inflation and deflation which has lead to serious workers unemployment. Therefore, as I stated before The Great Depression came about because of three main causes, in my opinion these three causes were not properly dealt with which has people believing that the United States has fallen into another depression similar to the one in the 1930s. CITES http://econ.economicshelp.org/2008/10/causes-of-great-depression.html http://www.buzzle.com/articles/economic-problems-in-the-united states.html http://www.livestrong.com/article/29651-three-major-causes-great
Open Document