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list 2 causes and 2 effects of the great depression
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Causes
1. Stock market crash (October 1929) — the crash wiped out household and business wealth, undermined confidence, and triggered sharp cuts in spending and investment.
2. Banking panics and monetary contraction — widespread bank failures and a shrinking money supply (exacerbated by the Federal Reserve’s policies) reduced credit and caused deeper declines in consumption and production.
Effects
1. Mass unemployment and poverty — U.S. unemployment peaked around 25% (1933), with many families losing savings, homes, and livelihoods; similar distress occurred worldwide.
2. Collapse in industrial output and global trade — production fell sharply and international trade contracted (partly due to protectionist tariffs), prolonging economic hardship and prompting major policy responses such as the New Deal.
1. Stock market crash (October 1929) — the crash wiped out household and business wealth, undermined confidence, and triggered sharp cuts in spending and investment.
2. Banking panics and monetary contraction — widespread bank failures and a shrinking money supply (exacerbated by the Federal Reserve’s policies) reduced credit and caused deeper declines in consumption and production.
Effects
1. Mass unemployment and poverty — U.S. unemployment peaked around 25% (1933), with many families losing savings, homes, and livelihoods; similar distress occurred worldwide.
2. Collapse in industrial output and global trade — production fell sharply and international trade contracted (partly due to protectionist tariffs), prolonging economic hardship and prompting major policy responses such as the New Deal.
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