The Great Depression: Causes and Consequences

The Great Depression
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The Great Depression: Causes and Consequences
The Great Depression started with the crash of the country’s stock market. Even though it is widely believed that it was the primary cause of the Great Depression, scholars and historians have suggested other underlying factors. These factors include overproduction of consumer goods coupled with under-consumption, uneven wealth distribution, loose regulations in the banking sector and other corporate sectors, and tariff policies. The overproduction and under-consumption of goods are perhaps one of the major underlying causes of the Depression (Foster, & Magdoff, 2009). Production of consumer goods continued even when most Americans could not afford them, resulting in a sharp decline in the prices. Industries could no longer sustain operations, and they started laying off workers and shutting down the business. These factors culminated...