Question

In your opinion, what were the two (2) most significant causes of the Great Depression? Hint: the stock market crash is not a cause, it is the actual Depression. use ur own words pls

Answer 1

Answer:-

Two most significant causes of the Great Depression

Bank Failures

In the underlying 10 months of 1930 alone, 744 US banks fizzled and savers lost their venture reserves. In a critical offer to raise support, they also endeavored to get their advances before people had the chance to repay them. As banks fizzled, it simply expanded the enthusiasm for various savers to pull back money from banks.

Long queues of people expecting to pull back their save reserves was a normal sight. The pros appeared to be unfit to stop bank runs and the breakdown in trust in the banking system. Many agree, that it was this failure of the banking system which was the most great explanation behind the money related downturn.

Diminished global lending and tariffs

In the late 1920s, while the U.S. economy was at the same time expanding, lending by U.S. banks to remote countries fell, not completely because of decently high U.S. advance expenses. The drop-off added to contractionary impacts in some borrower countries, particularly Germany, Argentina, and Brazil, whose economies entered a downturn even before the beginning of the Great Depression in the United States.

Meanwhile, American plant interests, suffering considering overproduction and expanded competition from European and other rustic creators battled Congress for the section of new tariffs on cultivating imports. Congress over the long haul got far reaching establishment, the Smoot-Hawley Tariff Act (1930), that constrained steep tariffs (averaging 20 percent) on a wide extent of cultivating and current things.

The authorization ordinarily actuated retaliatory measures by a couple of various countries, the total effect of which was declining yield in a couple of countries, and an abatement in overall trade.

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