Factors Affecting the Great Depression
 by Felicia S. 

The specific causes of the Great Depression have been a debate among historians and economists for years. Many causes and factors contributed to the onset of the Depression, including a combination of domestic and worldwide conditions. The most crucial of these was the fact that a tiny minority of the population controlled most of the wealth, while many average families could not afford to buy goods they themselves produced. Other major contributors to the onset of the Great Depression included the Stock Market Crash of 1929 and crippling bank failures (Graph). Throughout the 1930’s over 9,000 banks failed. Bank deposits were not insured and, as banks started to close, people lost all their savings. With the stock market crash and the fears of further economic woes, individuals from all classes stopped buying items, leading to a reduction in purchasing across the board. This cutback in spending led to a subsequent reduction in production and workforce, resulting in the loss of jobs for many.

While not considered a direct cause, the drought in the Mississippi Valley was another factor affecting the Great Depression. The drought was of such proportions that many could not pay their taxes or other debts and had to sell their farms at no profit to themselves, which only added to the nation’s economic despair. When combined with the other key elements mentioned, we begin to understand a few of the major factors that led our country into one of the worst economic times in American History.


REFERENCES:
Martin, Kelly. Top 5 Causes of the Great Depression; About.com: American history. Accessed November 10, 2010. http://americanhistory.about.com/od/greatdepression/tp/greatdepression.htm

Nardo, Don, 2000. The Great Depression Turning Points in World History. Greenhaven Press. ISBN-10: 0737702303
Supkis, Elaine M, 2008. World Stock Markets Crash; Money Matters. Graph; copyright, Dustin Woodard. Accessed November 10, 2010.
http://elainemeinelsupkis.typepad.com/money_matters/2008/09/september-15-20.html

Graph: http://elainemeinelsupkis.typepad.com/.shared/image.html?/photos/uncategorized/2008/09/15/great_depression_stock_graph_where_.jpg

Photo: Picture compiled from Wall Street Crash headline retrieved from http://edit.emich.edu/index.php?title=Wall_Street_Crash ; Texas Farm experiencing drought from photograph taken by the Farm Security Administration; Customers flood a bank in 1929 as Wall Street crashed, precipitating the Great Depression retrieved from www.slate.com/id/2201264/