The Great Depression (1 ene 1929 año – 1 ene 1939 año)

Descripción:

Causes:
1. The stock market crash- In the year 1929 the stocked market crashed due to a sudden dramatic failure of stock prices. This then became the lead up to the great depression because everyone lost their money.
2. Government policies- The Great Depression was from the Federal Reserve permitting the money stock to breakdown as panics submerged the banking system.
3. The failure of world trade due to the Smoot-Hawley Tariff- It did not specifically cause the great depression although it did worsen it. The Act increased prices, which then added stress to the struggling nations.
4. The collapse of the money stock- The decreasing supply of funds reduced average fees by an equal amount causing a deflation and leading up to the great depression.
5. Bank failures and panics- When banks wanted to defend themselves, they quit loaning money. Industries couldn't get access to money, making their doors close, causing millions of out of work.

Effects:
1. Factories shut down after the stock market crash as they were losing money and was forced to shut down.
2. Farms and homes were lost to foreclosure.
3. Mills and mines were also abandoned due to the reduced prices and reduced harvest.
4. People went hungry because they lost their jobs or didn’t make enough money to live a healthy life. For those unemployed they’d lose more and their lifestyle becomes even harder as hunger isn’t the only thing they have to worry about.
5. Caused further inability for people to spend or to save their way out of the crisis.
6. Resulted in economic slowdown.

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