Cause and Effect Essay of the Great Deppression

. Some of the causes of the Great Depression were low-interest rates, overproduction, uneven distribution of wealth, High Tariffs, falling demand, stock market speculation. Because of these things, one effect it had on was the economy the economy shrank 50%. In the first 5 years ago depression just in 1929 the economic output was $105 but by 1933 the country had five years of losses and only produced 57 billion dollars. Another effect it had was on politics that oppression affects politics by badly shaken confidence in unfettered capitalism. Another one is social life this the Dust Bowl drought destroyed farming in the Midwest and it lasted 10 years too long for most Farmers even hold out. To make things worse prices for agricultural products dropped to their lowest level since the Civil War. Almost 6,000 shantytowns called Hooverville Spring up in the 1930s. Wages for those who still had jobs fell 42%. Average family income dropped 40% from $2,300 in 1929 to $1,500 in 1933 that's like having income fall from $32,000 to $20,000 and twenty $16 as a result of increased by 50%. Roughly 250,000. And also hiring a fact on employment at the beginning of the Great Depression, in the last year of the Roaring Twenties, I don't plummet with 3.2%. That's less than the natural rate of unemployment. By 1930 had more than doubled to 8.7%. That's skyrocketed to 15.9% in 1931 and 23.6% in 1932. My 1933, unemployment was 24.9%. Almost 15 million people are out of work. That was the highest unemployment during the Depression and since then.

Another area these things affected was banking during the Depression, half of the nation's banks failed. And the first 10 months of 1930 alone, 744 fail. That was 1000 percent more than the annual rate in the 1920s. My 1933, 4,000 Banks had failed. As a result, depositors lost 140 billion dollars. Next was the stock market the stock market lost 90% of its value between 1929 and 1932. They didn't recover for 25 years. That's because people lost all confidence and Wall Street Market. Businesses, Banks and individual investors were wiped out. Even people who had invested lost money, because the banks invested money from their savings accounts. Trade was another area the World Trade plummeted 65% as measured in dollars and 25% and the total number of units. By 1939, it was still in below its level in 1929. In 1929 there were 5.3 billion dollars and trade value 1930 4.9 billion dollars

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