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Stock Market Crash:

Major decline of stock prices in all major categories of the market. Such as radios, refrigerators, washing machines and many more.

The stock market crash was something that marked the new age of our country. But despite all the things it done the stock market crash was something that helped accelerate the global economic collapse during the Great Depression.

This cause is important because it shows how the stock market crash is the reason so many people became unemployed. Which included 15 million people.

To me this could of been avoided if American companies just stopped selling so many goods at the same time. If they didn't I'm sure a lot of people's financial status would've been better than what it was. To prevent future crashes we could set up assets, clean up our finances, we could also keep investing.

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Bank Failures:

When a bank is unable to meet it's obligations to it's depositors or creditors due to it becoming to insolvent to meet the liabilities.

The bank was a HUGE thing that contributed greatly to the great depression. During the first 10 months of the 1930's over 744 banks had fallen. But counting all banks during the entirety of the 1930's over 9,000 had failed. Due to this financial chaos spread throughout the country.

This cause is important because it shows  how the bank is the main reason the people became unable to make financially in any future that was to come.

To me this could of been avoided if the bank was just prepared for something like this to happen. Due to this happening already I hope the bank already has a solution in line in case something like this was to happen again.

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Drought:

An extreme shortage in amounts of water.

The drought of the 1930's (also known as the Dust Bowl). Was an event that contributed to the great depression. Due to already being in trouble because of the down right horrible economy during the time many of the farmers of the time was forced to give up and move out of the plains to look for a more wide range of work. All of this was caused by the abnormal sea surface temperatures that came up which caused the great plains to dry up.

This cause is important because it shows the struggle the economy and the drought made it. for people who lived in or close to the great plains.

To me this could have been avoided if the farmers had got a source to keep the soil alive such as ground covers, shrubs or even small plants and trees. In the future we could avoid this by making sure that people who are near these sort of places have a second resource to back up on or to make sure that they have finances saved for this type of situation.

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1st Significant effect of The Great Depression

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1st Significant effect of The Great Depression

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Price deflation:

When the inflation rate falls below 0%

One good thing that came out of  the great depression is the price deflation. The price deflation that came helped out majorly to the people who's financial status has been negatively affected due to the great depression. But, despite how much it helped out it also majorly hurt farmers, business owners and homeowners.

This effect is important because it shows how even the good fortune of others can result in the opposite for different people.

To me this could of been avoided if there was certain policy's set in order. In the future we could avoid this by bouncing back on those exact policies.

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2nd Significant effect of The Great Depression

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2nd Significant effect of The Great Depression

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Unemployment:

The state of being without any sort of job.

Due to the great depression many people was put into positions where they did not have any job whatsoever. And due to many of these things the unemployment rate raised from 4.2% to a whopping 25% by 1933.

This effect is important because it shows that unemployment is something that can always affect a person at the drop of a hat despite whoever they are.

To me this could have been avoided if there was more work needed. The great depression started a lot of troubles back then, surely the government would've needed more help in restoring things such as the economy. In the future we can avoid this by leaving more spots for people to work in.

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3rd Significant effect of The Great Depression

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3rd Significant effect of The Great Depression

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Politics:

The set of activities that are associated with making decisions in groups, or other forms of power relations between individuals.

The great depression affected politics by shaking the confidence in unfettered capitalism. That current type of economics is what the current president of that time (Herbert Hoover) advocated and pushed for. As a result the people voted for  Franklin Roosevelt who in turn created Keynesian economics which would make a promise that government spending would end the Depression. It in fact did end the depression.

This effect is important because it shows how it can take one person to fix something of a greater scale.

To me this could of been avoided if the government itself had decided to keep their heads up and high despite what was going on. In the future we can avoid this by making sure that our government doesn't lose sight of our position on the pecking order.