The Great Depression Test Prep Essay

galore(postnominal) factors caused the economic condition in America to substitute in the late 1920s resulting in the considerable Depression. These factors admit World contend One, individual debt, line of merchandise failure, farming decline, banking failure, and the take commercialise crash. World Depression was caused by World War one because the demand for American products reduced after the contend resulting in too much supply with limited demand. take was lowered and jobs had to be cut, leaving umpteen without jobs leaving umteen in debt because many people took out loans or stocks during the war. Many people did not have gold to spend in production linees and businesses also took out loans that needed to be paid back. However, without business they were not making any money resulting in business failure. This also hurt the economy. After the war the price of cereal grass dropped and farmers had to double production to make the same profit do during the war. Farms were destroyed from this overproduction and farmers could no longer make money to liquidate back their loans as well. All of these borrowers could not pay back their loans so banks were left with only one choice, to closed mass. People panicked and withdrew totally(prenominal) their money from the banks before the banks all shut down and other people lost all their savings.



Businesses could no longer get loans to help their businesses get started over again which hurt the economy even more. When businesses began shutting down many people sold stocks too quickly and lowered the place of the stocks because everyone was selling their stocks so they were easy to get. This led to the stock market crash which led to the U.S Great depression and then the ball-shaped depression. All of these factors are a domino affect, one goes down and they all crash.
President Roosevelt and Hoover have different philosophical, economic, and policy-making views on how the government should act in regard to the Great Depression. Both FDR and Hoover because of their political differences handled the depression in a...If you necessitate to get a full essay, order it on our website: Orderessay



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