the+great+depression.km

was an economic slump for people living in Europe, north american and other industrialized parts of the world during the year 1929 until 1939. The economic situation in Germany was made worse by the enormous debt with which the country had been following the First World War.
 * //THE GREAT DEPRESSION//**

forced to barrow a lot of money, European powers were being fixed as demanded by the Treat of Versailles in 1919, and also to pay for industrial reconstruction. When the American economy fell into depression, US banks recalled their loans, causing the German banking system to collapse. other Countries that depended on products, such as those in Latin America, were already suffering a depression in the late l920s. More advanced farming methods and changes meant that the supply of food was rising faster than demand, and prices were falling as a consequence. Initially, the governments of the producer countries stockpiled their products. but this depended on loans from the USA and Europe. When these were recalled, the stockpiles were released onto the market, causing prices to collapse and the income of the primary-producing countries to fall very fast.

there was so much more reasons for the cause of the depression besides the crash of the stock market. although that was one of the big reasons why it happened there were several others to consider.

1. Unequal distribution of wealth. While wages were rising for the majority of workers, they were not keeping pace with the increase in the cost of living or the wealth in the hands of the industrialists and others in the upper income classes.  2. people didn't see the disadvantages of the stock market. Many Americans purchased stock on credit. This was known as margin buying.  3. people were making it easier to get the food and other things they needed, but the income remained low.  4. Buying on credit, People purchased things like refrigerators on time, and did not have money to pay for the product in the future, when the bills became due.  5. Federal regulations on businesses also contributed to the cause. Especially favorable to the large corporations were the taxes laws which were written to encourage business expansion.  6. Banks were permitted to speculate in land and the stock market with little government regulations.  7. High tariffs and war debts helped spread the depression world wide.  8. The Stock Market Crash of 1929 signaled the beginning of the Great Depression.

"By 1929 much of the money was not invested in the stock market did not actually exist."

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facts about the great depression