What was the cause of the Great Depression?

Question

I listened to Rush Limbaugh the other day.

Answer 1

Greed,pure & simple.Everyone thought they could make easy money by investing,which pushed shares up to an unsustainable level,then the bubble burst.The Depression led to hyper inflation in Germany,which opened the way for Hitler.

Answer 2

The Great Depression was caused by the Wall Street Crash, America was concerned over its own economy so withdrew its loans to Britain, France and Germany etc. Subsequently world trade could not function properly.

The Wall Street Crash occurred because America over produced and other nations could not afford to buy US produce.

There was a slight dip in the economy, and because Americans are  EXTREMELY STUPID they panicked massively and sold their shares so confidence dropped.

The Great Depression caused nations like Germany, Italy and Japan to be heavily nationalistic which caused WWII.

So Americans are responsible for the loss of millions of people in WWII.

Answer 3

Business cycles are to a certain degree inevitable. Businesses grow, hire more people, build up inventory ... and then realize they have stopped growing, stop producing as many products, etc. It's been true for decades and decades.

After a pretty good run of prosperity in the 1920's, we probably should have known a thud was coming. Throw in some irrational investing in the stock market and a lack of government controls at the time, and the depression hit America pretty hard. In addition, post-WW1 Germany was a mess due to the steep cost of losing to the Allies, which didn't help matters on a worldwide basis.

That's an oversimplication, but you get the idea.

Answer 4

Stock Market Crash of 1929. Black Tuesday is the exact day it all happened.

Answer 5

A lot of people invested in the stock market because it was almost guaranteed that it would double what they invested but it broke and the country went bankrupt.

Answer 6

A combination of things.

People were buying stocks short if a stock cost a buck they put down 50 cents in hopes it go up and sell at 2 bucks and pocket the profit.

The farm in the Midwest were being way over farm and used poor soil conservation.

Than when the first time had a lack of rain fall let to the dust bowl.

Banks were not required to insure their savings so they had money tie into stocks.

So when the farmers needed the cash.

The banks called in the stocks which were worthless.

and went South from there.

NOBODY jump from buildings either.