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Answer this question… Too much credit use

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Shane Gerhold

Lvl 13
2y ago

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There were several major causes of the Great Depression in the United States. 1. Unequal distribution of wealth. There was not a large middle class. While wages were rising for the majority of workers, they were not keeping pace with the increase in the cost of living or the wealth in the hands of the industrialists and others in the upper income classes. 2. There was over speculation in the Stock Market, which was not regulated. Many Americans purchased stock on credit. This was known as margin buying. 3. Increased manufacturing and agricultural output, but wages that did not keep pace for the consumers to purchase all that was produced or grown. Hence, inventories increased and agricultural income remained low. 4. Buying on credit, known in the 1920s as installment buying. People purchased things like refrigerators on time, and did not have money to pay for the product in the future, when the bills became due. 5. Federal regulations on businesses also contributed to the cause. Especially favorable to the large corporations were the taxes laws which were written to encourage business expansion. 6. Banks were permitted to speculate in land and the Stock Market with little government regulations. 7. High tariffs and war debts helped spread the depression worldwide. 8. The Stock Market Crash of 1929 signaled the beginning of the Great Depression.

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Wiki User

12y ago
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when the stock market crashed and the dust bowl began those were some factors of the Great Depressin

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Wiki User

11y ago
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Banks took houses and could not sell them.

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Wiki User

16y ago
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Read comment on first answer ^^^

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Taylor Evans

Lvl 5
2y ago
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Too much credit use

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Anonymous

4y ago
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Samuel Romero

Lvl 1
4y ago
*Too much speculation
Overspending

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Q: Which of these is one reason the Great Depression began?
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