Causes And Effects Of Great Depression

Causes
Wealth is unequally distributed amoung the population
Many people go into debt on installment plans
Old and decaying industrial base makes U.S. industry less competitive
Industry and agriculure overproduce
Government pursues unsuccessful economic policies
Stock market crash leads to financial panic

Effects
People suffer widespread unemployment, hunger, poverty, and homelessness
Industrial and farm production falls
World economic crisis devfelops
Democrats win victory in 1932
Roosevelt initiates the New Deal

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Root Causes of the Great Depression – Factories and farms produce more goods than people can buy. – Banks make loans that borrowers cannot pay back. – After the stock market crash, many businesses cannot find people who will invest …

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Causes of Great Depression 1. Banks borrowing too much money to people that could not pay it back. As time went on, banks stopped lending and thousands went out of business 2. Too many people borrowing money to use for …

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