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Great Depression Causes

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Starvation, homelessness, and unemployment were just some of the devastating components of life that many people across the globe suffered through as a result of the longest lasting economic downturn in history. This was also known as the Great Depression. The Great Depression caused worldwide panic to every country and continent in the world, hitting the United States and Germany the hardest. Overproduction, the stock market crash, and the weak banking systems led to a crisis that immensely impacted the way people had to live their everyday lives.

Many factors played a role in triggering the start to the Great Depression, which can be considered one of the darkest times in American history. One of the most influencing factors was the vast amount of economical resources being made that weren’t being sold at the rate they were being produced. Both farmers and factories were producing much more goods than the people were able to afford. This was known as overproduction. By 1929, worker input increased by 32 percent allowing manufacturing companies to soar. ("Causes of the Great Depression." Great Depression and the New Deal Reference Library. Ed. Allison McNeill, Richard C. Hanes, and Sharon M. Hanes.) During this time, more suburban families had access to electricity and automobiles causing the demand to rise immensely. In turn, farmers produced more goods to meet the demand. With the overabundance of new consumer products and farm goods such as wheat and meat, prices began to decrease putting farmers and manufacturers into major debt. In an attempt to aid the war effort, many farmers mechanized their techniques spending extensive amounts of money on improving their way of farming. This put farmers across the nation into major debt. While the advances in machinery due to these improvements enhanced production, the prices of the goods being sold decreased, having

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