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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.