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Causes of the Great Depression

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Causes of the Great Depression

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Identify key causes through context.

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United States

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Causes of the Great Depression
 

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Causes of the Great DepressionOnline version

Identify key causes through context.

by AUSTYN VINTON
1

The 1920s were marked by rapid growth , but underlying weaknesses persisted . The shattered confidence in the markets and reduced investment . Widespread failures eliminated many people ? s savings , worsening unemployment and spending . policies reduced international trade , while in farming and industry left factories with unsold goods as they had no customers willing to buy . As incomes fell , underconsumption spread , pulling prices lower and deepening the downturn .

2

Recovery failed to take hold in many regions , while monetary policy too late . The Federal Reserve kept interest rates , constraining lending and investment . International demand , worsening unemployment . The Dust Bowl devastated agricultural areas , compounding hardship for farmers . A combination of these factors pushed consumer debt and reduced purchasing power , making recovery slower and uneven .

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