Causes Of The Great Depression

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to balance the budget, resulting in a severe recession. The value of farmland falls 30-40 percent. Severe Declines in organized labor. Many workers lose their jobs as more advanced machinery makes them unnecessary.
The acute phase of the Great Depression began in October 1929, with the Wall Street Crash and continued through the early 1930s. After share prices plunged on Wall Street, US banks were forced to call in their foreign and domestic loans. However most people were already suffering from the various economic problems and few were able to pay the banks.
Meanwhile, those who had money saved in banks began to withdraw it. Without enough money to pay their depositors, banks collapsed. People began to hoard money, which contributed to the problem. Times became more difficult because of people withdrawing their funds from the market.
A working economy relies on a circular flow of money; my spending becomes part of your earnings, and your spending becomes part of my ...

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