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Reptile [31]
3 years ago
15

Which economic development contributed to the Great Depression?

History
2 answers:
mixer [17]3 years ago
8 0
<span>Many things caused the Great Depression, not just one single event.
</span><span>Stock Market Crash of 1929.
</span><span>Bank Failures
</span><span>Reduction in Purchasing Across the Board
</span><span>American Economic Policy With Europe

credits to: https://www.thoughtco.com/causes-of-the-great-depression-104686
</span>
gregori [183]3 years ago
8 0

The Great Depression of the 1930s was the largest recession in history and its causes were overproduction of goods and the expansion of unbridled credit by banks during the american devolopment. The American economy was experiencing a period of euphoria during the 1920s. The US had become the world's leading economic powerhouse and was the largest supplier of manufactures to Europe. In this scenario, banks have expanded their credit rampantly to sustain the increase in production. The situation worsened with the recovery of the European economy, which again developed and drastically reduced demand for American products. However, production increased in a way that there was not enough consumer market to dispose of the products. The businessmen lost the conditions to pay their loans to the banks and the financial system collapsed.

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