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History

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3. What did people think caused of the Depression?

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Answer: It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and employment as failing companies laid off workers.

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Answer: Many think the depression was caused by the stock market crash of 1929, but actually, the depression was mainly caused by underlying problems and an imbalance in the economic structure (Thorkelson). In addition, in the fall of 1930, banking panics started to arise (“Great Depression”).

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