Top 5 Causes of the Great Depression

What caused the Great Depression, the worst economic depression in US history? It was not
just one factor, but instead a combination of domestic and worldwide conditions that led to
the Great Depression. As such, there is no agreed upon list of all its causes. Here instead is a
list of the top reasons that historians and economists have cited as causing the Great
Depression.
The effects of the Great Depression were huge across the world. Not only did it lead to theNew Deal in America but
more significantly, it was a direct cause of the rise of extremism in Germany leading to World War II.
1. Stock Market Crash of 1929
Many believe erroneously that the stock market crash that occurred on Black Tuesday, October 29, 1929 is one and
the same with the Great Depression. In fact, it was one of the major causes that led to the Great Depression. Two
months after the original crash in October, stockholders had lost more than $40 billion dollars. Even though the stock
market began to regain some of its losses, by the end of 1930, it just was not enough and America truly entered what
is called the Great Depression.
2. Bank Failures
Throughout the 1930s over 9,000 banks failed. Bank deposits were uninsured and thus as
banks failed people simply lost their savings. Surviving banks, unsure of the economic
situation and concerned for their own survival, stopped being as willing to create new loans.
This exacerbated the situation leading to less and less expenditures.
3. Reduction in Purchasing Across the Board
With the stock market crash and the fears of further economic woes, individuals from all
classes stopped purchasing items. This then led to a reduction in the number of items
produced and thus a reduction in the workforce. As people lost their jobs, they were unable
to keep up with paying for items they had bought through installment plans and their items
were repossessed. More and more inventory began to accumulate. The unemployment rate
rose above 25% which meant, of course, even less spending to help alleviate the economic
situation.
4. American Economic Policy with Europe
As businesses began failing, the government created the Smoot-Hawley Tariff in 1930 to help
protect American companies. This charged a high tax for imports thereby leading to less
trade between America and foreign countries along with some economic retaliation.
5. Drought Conditions

While not a direct cause of the Great Depression, the drought that occurred in the Mississippi Valley in 1930 was of
such proportions that many could not even pay their taxes or other debts and had to sell their farms for no profit to
themselves. The area was nicknamed "The Dust Bowl." This was the topic of John Steinbeck's The Grapes of Wrath.
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Socio-cultural of the great depression
No nation could emerge from the cauldron of national crisis without profound social and
cultural changes. While many undesirable vices associated with hopelessness were on the
rise, many family units were also strengthened through the crisis. MASS
MIGRATIONS reshaped the American mosaic. While many businesses perished during the
Great Depression, others actually emerged stronger. And new forms of expression flourished
in the culture of despair.
The Great Depression brought a rapid rise in the CRIME RATE as many unemployed workers
resorted to petty theft to put food on the table. Suicide rates rose, as did reported cases of
malnutrition. Prostitution was on the rise as desperate women sought ways to pay the bills.
Health care in general was not a priority for many Americans, as visiting the doctor was
reserved for only the direst of circumstances. Alcoholism increased with Americans seeking
outlets for escape, compounded by the repeal of prohibition in 1933. Cigar smoking became
too expensive, so many Americans switched to cheaper cigarettes.
Higher education remained out of reach for most Americans as the nation's universities saw
their student bodies shrink during the first half of the decade. High school attendance
increased among males, however. Because the prospects of a young male getting a job were
so incredibly dim, many decided to stay in school longer. However, public spending on
education declined sharply, causing many schools to open understaffed or close due to lack
of funds.
Demographic trends also changed sharply. Marriages were delayed as many males waited
until they could provide for a family before proposing to a prospective spouse. Divorce rates
dropped steadily in the 1930s. Rates of abandonment increased as many husbands chose the
"poor man's divorce" option they just ran away from their marriages. Birth rates fell
sharply, especially during the lowest points of the Depression. More and more Americans
learned about birth control to avoid the added expenses of unexpected children.
Mass migrations continued throughout the 1930s. Rural New England and upstate New York
lost many citizens seeking opportunity elsewhere. TheGREAT PLAINS lost population to states
such as California and Arizona. The Dust Bowl sent thousands
of "OKIES" and "ARKIES" looking to make a better life. Many of the MIGRANTS were
adolescents seeking opportunity away from a family that had younger mouths to feed. Over
600,000 people were caught hitching rides on trains during the Great Depression. Many
times offenders went unpunished.

Films like The Bride of Frankenstein (1935) entertained Americans by the thousands despite the
hardships brought by the Great Depression.
Popular culture saw new trends as well. Despite the costs of an evening out, two out of every
five Americans saw at least one movie per week.
Classic films like FRANKENSTEIN, IT HAPPENED ONE NIGHT, and GONE WITH THE WIND debuted
during the Great Depression. Radio flourished as those who owned a radio set before the
crash could listen for free. President Roosevelt made wide use of radio technology with his
periodic "fireside chats" to keep the public informed. Dorothea Lange depicted the sadness of
Depression farm life with her stirring photographs.
And an apt musical form the blues gained popularity during the decade.
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The cultural impact of the great depression
In order to survive the Great Depression, Americans had to change their habits, adapt their
lifestyles, and reevaluate their values. This article explores the major cultural impacts made by
the Great Depression on Americans during that time.
Brother, can you spare a dime? This is a very popular Bing Crosby song in 1932, a year when
the Great Depression was in full swing in America. This song encapsulates the very desperation
that Americans felt during this time of great economic scarcity. From a time of great abundance
in the swinging 20s to an era of extreme poverty in the 30s, Americans really had a lot of
toughening up to do during the Great Depression. If they were to survive this era, they needed
to condition themselves mentally and psychologically for the tougher times that might stretch on
for years on end. This is where culture and appurtenances come in.
The cultural change that happened in America during the Great Depression can be divided into
two types one was an overt culture that reacted to the era by accepting and embracing the
extreme poverty of the time and by finding pragmatic ways to stay alive. The other was a more
subtle conditioning of the mind, and one that offered people an escape from the hunger and
scarcity that they faced from day to day.
A good example of the first kind of cultural change is the phenomenon of mass migration that
occurred in the 1930s. This is best described in John Steinbecks Grapes of Wrath. At the start
of the Great Depression, people simply packed up their belongings and took their families with
them on the road, hoping to chance upon greener pastures. The rising trend of migration from
the rural areas to more urban centers shifted the population and stressed the living capacity of
cities. Migration uprooted families and changed their cultural milieu. Cultural nuances brought
from different parts of rural America to the city centers also influenced urban mores.
Another cultural effect of the Great Depression is the sharp fall in birth rates as couples opted to
not add any more to the mouths they were feeding. The compaction of the basic family unit led
to many a single child. Marriage rates also decreased as matrimony was put on hold until
better times. Divorce rates during the Great Depression fell sharply as well, although more
partners simply chose to just abandon their spouses as a cheaper alternative. A darker effect of
the economic hardship was the rise in antisocial activity, namely crimes such as theft and
robbery. People who have survived through the Great Depression were also found to be more
frugal, wary of banks and the stock market, and apt to hoard food.
In order to forget their pressing troubles, more and more people turned to the mass media for
entertainment. Despite the crisis, the Broadway play Tobacco Road set all-time attendance
records. Superman was introduced in 1938, which played into peoples desires to have a hero
to solve all their problems. The radio flourished, with radio shows such as The Lone
Ranger and The Green Hornetbecoming hugely popular. Movies like Frankenstein, Snow White
and the Seven Dwarfs and Gone With the Wind also found millions of audiences in Americas
cinemas. The blues musical genre also became hugely popular during the time.
Of course, movies and entertainment were not enough to get Americans through the Great
Depression. The task of overcoming the crisis was square on the shoulders of the American
government and in its ability to effect successful economic reforms. The adapting culture,
however, helped Americans ride the years of crisis.
Photo Credit:
Business Week Online. "Great Depression." Bloomberg LP, n.d. Web 18 May 2010.
Sources:
Cravens, Hamilton (2009). Great Depression: People and Perspectives. USA: ABC-CLIO, LLC.
Croft, Jennifer. (n.d.). Effects of the Great Depression. Great Depression What Happened and
How it Compares With Today. Retrieved April 2, 2010 from
http://www.thegreatdepressioncauses.com/effects.html.
Independence Hall Association in Philadelphia. (n.d.). Social and Cultural Effects of the
Depression. U.S. History. Retrieved April 2, 2010 from http://www.ushistory.org/us/48e.asp.
Kyvig, David E. (2002). Daily Life in the United States, 1920-1939: Decades of Promise and
Pain. USA: Greenwood Press.
Schultz, Stanley (2006). The Great Depression A Primary Source History. USA: Gareth
Stevens Publishing.
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