What Caused The Great Depression Essay

600 Words3 Pages
The Great Depression The 1920’s is the decade that started a new lifestyle, a lifestyle of luxurious spending and lavish partying. It is sometimes referred to as the Roaring Twenties or the Jazz Age, it is also sometimes referred to as the "Golden Twenties" because of the economic boom following World War I. During the 1920’s everything was great and businesses were doing their best in this industrial boom, but when the years reached 1929 a tragedy occurred, along with other factors, that triggered the Great Depression through-out the 1930’s. The major causes of the Great Depression were: The living on credit lifestyle, overproduction/tariffs, and the stock market crash of 1929. Living on credit was a major cause of the Great Depression. Credit was a great thing back then, it was very easy for people to get whatever they wanted, all they had to do was pay later. But people were careless, they were buying things they couldn’t…show more content…
This was because unemployment was rising fast (Doc. E), which meant people were spending less to the point that it caused a huge shortage of income to many companies and businesses. The stock exchange was a replacement of work, where people risked their money on what they speculated would do well (Doc. F). Since the unemployment rate was high and businesses were failing, the stock market went through a dramatic crash causing many people and companies to go bankrupt. The stock market crash was a major cause of the Great Depression because it had a large role in the country’s economy, and with the market crashing the economy crashes as well. Out of many factors and causes, these three were the most that influenced the beginning of the Great Depression. As these causes are linked together, they caused a chain reaction of negative results on the country’s economy. So if anything goes wrong with these factors, it may lead to another recession or
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