What were the causes and consequences of the great depression?
The great depression began with the collapse of the New York Stock Exchange in October of 1929. Some of the cited causes of the Great Depression include: Investing on margin, land speculation in Florida , a decade long agricultural recession, irresponsible loan policies by banks, and a lack of regulation on capital markets. After the collapse, the economy fell into years of extended economic downturn, decline and unemployment. By 1932, one of four Americans was out of work. One in three banks had closed and millions of land owners lost their property. With the American financial house in ruins, loans to Germany, Britain, and France stopped. American banks called in their national and international loans. When no one could repay, banks closed, sparking bank runs throughout the United States. The Smoot-Hawley Tariff was passed in 190 by the United States congress.
This tariff erected an impenetrable tariff wall around the United States. Britain, France, and Germany soon created similar tariffs. This was the beginning of economic nationalism.