The Great Depression was a global financial crisis that consumed most of the developed world throughout the 1930s. While the first real indications of its onset can be seen at the end of 1929.
there are many factors for great depressions in which some are
1) Stock market crash of 1929 :-
It was one of the major causes that led to the Great Depression. Two months after the original crash in October 1929 , 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) 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.
Yeas federal response to the depression encouraged economic growth and confidence. because by 19331933 millions of Americans were out of work but they don't loose their hope the american government in
1933 Congress passed the Agricultural Adjustment Act (AAA) to provide economic relief to farmers.
National Industrial Recovery Act (NIRA) in 1933 was passed , attempted to end cut-throat competition by setting codes of fair competitive practice to generate more jobs and thus more buying.
In 1935 Congress passed the National Labor Relations Act, which defined unfair labor practices, gave workers the right to bargain through unions of their own choice and prohibited employers from interfering with union activities.
There are many more attempt was taken by american government at that time to remove depressions and create more job.
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That time they did the great job to overcome the depressions.
Roosevelt promised Americans a “New Deal” when he took office, and during his first “Hundred Days” as president, he signed a number of groundbreaking new laws. Roosevelt’s aides later admitted that most New Deal agencies were closely modeled on those that Hoover had attempted, but Roosevelt’s plans differed in financing and scope. New Deal bills supported direct federal aid, tightened government control over many industries, and eschewed volunteerism in favor of deficit spending, all in the hopes of jump starting both consumer confidence and the economy.
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This topic is very vast, big and very interesting topic.it can't be explain in just one and two para.
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