What were causes and effects of the Great Depression?



It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and employment as failing companies laid off workers.

What were the effects of Great Depression?

The Great Depression of 1929 devastated the U.S. economy. A third of all banks failed. 1 Unemployment rose to 25%, and homelessness increased. 2 Housing prices plummeted, international trade collapsed, and deflation soared.

What were the 4 causes of the Great Depression?

The causes of the Great Depression included the stock market crash of 1929, bank failures, and a drought that lasted throughout the 1930s. During this time, the nation faced high unemployment, people lost their homes and possessions, and nearly half of American banks closed.

What were the effects of the Great Depression quizlet?





(1) 50% of all US banks failed (2) The US economy shrank by 50% (3) The unemployment rate reached a high of 25% (4) Housing prices dropped by 30% (5) International trade dropped by 65% (6) Prices on manufactured goods fell 10% per year (7) Wages for American workers fell 42% (8) Homelessness in America skyrocketed.

Who was most affected by the Great Depression?

The country’s most vulnerable populations, such as children, the elderly, and those subject to discrimination, like African Americans, were the hardest hit. Most white Americans felt entitled to what few jobs were available, leaving African Americans unable to find work, even in the jobs once considered their domain.

What were the 3 main causes of the Great Depression?

What were the major causes of the Great Depression? Among the suggested causes of the Great Depression are: the stock market crash of 1929; the collapse of world trade due to the Smoot-Hawley Tariff; government policies; bank failures and panics; and the collapse of the money supply.

What were the main causes of the Great Depression quizlet?

Terms in this set (10)

  • Buying on Credit.
  • Underconsumption/ Overproduction.
  • Unequal Distribution of Wealth.
  • Margin Buying.
  • Stock Market Crash.





What caused the Great Depression quizlet?

The Great Depression was triggered by the stock market crash of 1929, but many other causes contributed to what became the worst economic crisis in U.S. history. The stock market crash cost investors millions of dollars and contributed to bank failures and industry bankruptcies.

What are 5 facts about the Great Depression?

10 Facts About the Great Depression

  • The Great Depression started on Wall Street.
  • Herbert Hoover was president during the start of the Great Depression.
  • The peak of the Great Depression was from 1932 to 1933.
  • The Great Depression caused social upheaval and political unrest.
  • Trade policies made the Great Depression worse.

Why did the Great Depression affect the world?

Although it originated in the United States, the Great Depression caused drastic declines in output, severe unemployment, and acute deflation in almost every country of the world.

What were 4 problems with the economy in the 1920s?

The economic boom was faltering. It was too heavily based on cars and consumer goods. Overproduction and underconsumption were affecting most sectors of the economy. Old industries were in decline.



What was the worst thing about the Great Depression?

At the height of the Depression in 1933, 24.9% of the nation’s total work force, 12,830,000 people, were unemployed. Wage income for workers who were lucky enough to have kept their jobs fell 42.5% between 1929 and 1933. It was the worst economic disaster in American history.

How did the Great Depression affect black people?

African-American unemployment rates doubled or tripled those of whites. Prior to the Great Depression, African Americans worked primarily in unskilled jobs. After the stock market crash of 1929, those entry-level, low-paying jobs either disappeared or were filled by whites in need of employment.

How did the Great Depression affect food?

During the Great Depression, which occurred from 1929 to 1933, many Americans lost all of their money and were not able to get jobs. Therefore, they were not able to buy food. Since most people did not have enough money to shop for food, there wasn’t enough business to keep most of the groceries fully stocked.

What were the 3 main causes of the Great Depression?

What were the major causes of the Great Depression? Among the suggested causes of the Great Depression are: the stock market crash of 1929; the collapse of world trade due to the Smoot-Hawley Tariff; government policies; bank failures and panics; and the collapse of the money supply.

What was the impact of the Great Depression of 1929?

The most devastating impact of the Great Depression was human suffering. In a short period of time, world output and standards of living dropped precipitously. As much as one-fourth of the labour force in industrialized countries was unable to find work in the early 1930s.



What was one long range effect of the Great Depression?

One long-range effect of the Great Depression was that many people developed habits of saving and thriftiness. People of the depression had very little and were forced to be thrifty with finances.

How did the Great Depression affect families?

The Depression had a powerful impact on family life. It forced couples to delay marriage and drove the birthrate below the replacement level for the first time in American history. The divorce rate fell, for the simple reason that many couples could not afford to maintain separate households or pay legal fees.

How did the Great Depression affect farmers?

In the early 1930s prices dropped so low that many farmers went bankrupt and lost their farms. In some cases, the price of a bushel of corn fell to just eight or ten cents. Some farm families began burning corn rather than coal in their stoves because corn was cheaper.