What Caused The Great Depression?

The Great Depression was a period of economic turmoil in the 1930's.  It affected many countries in Europe and North America.  Most countries in Asia were largely unaffected; however. It started in 1929 due to a number of factors and the latest countries got out of it was in 1940. 




Many factors contributed to the Great Depression. There was no biggest factor but a bunch of smaller ones.  The biggest belief was that the crash of the stock market caused the start of the Great Depression.  After that then other factors started to come into play.  The deflation of assets and goods prices were one of the reasons.  Because they were down, countries had more exporting items than the demand was.  Because the demand was down the governments had to lower the prices on those items to get countries to buy them the governments earned less money and had to get out of their debts.  Then the U.S decided to make all  imported goods have to pay a tax.  This was to discourage buying imported goods and buy American made goods, but that backfired on them.  Countries elsewhere put a tax on American made goods which also brought down the demand for American made goods and slowed down world trade.  Without world trade the economies of many countries fell even more and became even more entrenched in debt.  Many of the factors that were present during the Great Depression were there during the recession of the late 2000's.  The stock market crash that precipitated the Great Depression also precipitated the recession.  Once countries changed the way that banks could charge interest and loan money.