ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Great Depression Causes

Updated on June 7, 2008

Great Depression Causes

We often hear many of the effects of the Great Depression but what about the causes of it? Many people aren’t very familiar with what lead to all of it. There is often a misconception that all was well and then on October 29, 1929 it all fell apart when they stock market crashed. While this is a very remarkable event in the Great Depression, it isn’t what caused it. In fact, there were plenty of things going on that let to it in the couple of years prior.

The economic problems that were going on all over the world were one of the many causes of the Great Depression. People were dealing with owing money but not being able to secure a job to pay for their ongoing expenses. The losses seemed to be everywhere and people weren’t able to spend enough at the various stores out there to keep them open. They were desperate to get what they could at the lowest possible price. Only essential items were purchased.

No one could really afford to by anything extra, so the factories were shutting down. As a result more and more people were out of work. We tend to forget that all of the businesses out there that make money depend on money coming in and going out from various resources. The amount of debt that individuals and businesses had were very high and the income they had to take care of them was often next to nothing.

There were issues with the climate too that couldn’t be controlled. Severe drought in places continued to result in crops not growing. The fact that many areas were dealing with insufficient soil due to erosion wasn’t helping either. The yield from the crops was becoming very low.

Wide spread panic also contributed to the Great Depression. People lost their faith in the economics of their country. They no longer placed their money that they did have in the bank. They held onto the supplies they had and changed their way of using them. They carefully planned so they could stretch them out as far as they could. This meant they weren’t keeping the cycle of buying and paying for goods consistent.

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      Depression.. needforhealth.wordpress.com 

      5 years ago

      Nicely written . Economic cause is the main cause of depression now a days . Every person feels insecured regarding their economic status .

      Thanks

    • profile image

      Cameron 

      6 years ago

      That seems to me that those are what caused the Great Depression.

      I liked it.

    • profile image

      Steve Smith 

      6 years ago

      I never really understood this all that well. Although, you made it perfectly clear to me.

      Thanks

    • profile image

      Posey Mosey 

      6 years ago

      Very informative

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)