What are 3 causes of the Great Depression?

Answer 1

i think that the depression was caused by the combined bacts of the stock market and world war I i cant see anyother reasons though1.World war 12. The U.S Stock Market crash of 1929

3. The banks structures weren't stable. They were to weak.

Answer 2

The biggest single cause was margin buying of stock. 100 shares could be bought for the price of 10 shares, the rest payable later "as the stock grew". Soon there were billions of dollars of unpaid-for stocks in circulation, and investors got nervous, culminating in thousands of margin calls ("we want the rest of our money NOW"), and runs on banks to remove cash money "while it was still safe". Countless numbers of people who were very wealthy - but only on paper - were wiped out overnight.

Answer 3

1) Relaxed lending standards in mortgage banking. US debt load had grown to 130% of GDP by 1929 (in contrast it grew to 300% of GDP in 2008)

2) A relaxed government policy on the business and banking collapse. Relax standards resulted in insolvent banks. There was no FDIC to insure deposits so as consumers made a run on banks to withdraw deposits, balance sheets went to zero, and deposit holders lost all of the money in the bank (this can't happen today with the FDIC for accounts up to $250K (and in some cases more).

3) A massive contraction in consumer spending due to the collapse of the banking system and a complete loss of faith in the US economic engine. At its worst during the great depression, consumer spending only accounted for 20% of the US GDP.

Answer 4

The four main factors that contributed to the start of the Great Depression were:

1. Unequal distribution of wealth.

2. Over speculation of the Stock Market.

3. Increase in manufacturing/agricultural output but insufficient pay wages to workers.

4. Buying on credit, which led to debt.

Answer 5

Unequal distribution of wealth, overproduction, real estate

Answer 6

Stock Market Crash

savings of the rich

Answer 7

The three causes of the great depression were stock market, bank failures and reduction in purchasing by people and companies. The stock market happened in 1929.