Origins of the Great Depression and its Conclusion
The Great Depression was not just an American concern, it spread throughout the world rapidly, creating a worldwide economic crisis. One of the main causes of the Great Depression was the fall in total demand. As people lost money in the Stock Market Crash of 1929 and the banks began to collapse the demand for products decreased significantly. This decline could only be restored by an increase in government spending to stabilize the industries. A reason that the United States Stock Market crashed was that too many products were produced too quickly. The production succeeded the demand. One article written in 1931 states the issue that was created “We have instead the paradox that production has increased so rapidly as to bring with it poverty, unemployment, government deficits, and high taxation.”1 This quote sums up the created problem beautifully. Some other issues contributed but the main issue was the lack of demand. After the Stock Market Crash consumers began to become uncer...