The Cause of the Great Depression

There were many major reasons of what caused the great depression. In 1929 the stock marketing crashed, stockholders lost over 40 billion dollars and then in 1930 America entered the Great Depression. Also there was 9000 bank failure throughout the United States and banks that were left open where unsure of the economic situations so they were less willing to give out loans. Banks were much more stricked with their money. In the late 1920’s the money distribution was so unequal that it affected many other things later in the years. But the people who were wealthy still did not want to spend their money so it was never going back to the government. This made prices at local stores have to increase a lot more than anyone would want to spend.  The Federal Reserve had raised the interest rate again in the early 1930’s to preserve the value of the dollar. But this meant that businesses were restricted the availability for money. Causing many more places to go into bankruptcy. The main cause of the Great Depression was bad use and handling of the United States’ money by Making unequal salaries and, bad management of the money.

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