Causes of the Great Depression

• The stock market crash of 1929. During the 1920s the U.S. stock market underwent a historic expansion.
• Banking panics and monetary contraction.
• The gold standard.
• Decreased international lending and tariffs.

  How did the Great Depression in the US affect other nations around the world quizlet?

  The Great Depression affected countries worldwide because the United States had set up many world markets with a lot of trade Nations so when the world’s leading economy fell the global economic system began to crumble and contract. Why were farm families hit particularly hard by the Depression?

  What was the most valuable commodity during the Great Depression?

  Things such as non-perishable foods will be the most valuable. During the Great Depression, alcohol was in prime demand with people distilling rum and gin themselves. As a commodity, alcohol can also have medicinal and hygienic purposes.

  Why did the Great Depression in America affect Europe so quickly?

  Falling prices and demand induced by the crisis created an additional problem in the central European banking system, where the financial system had particularly close relationships with business. In 1931, the Creditanstalt bank in Vienna collapsed, causing a financial panic across Europe.

  How did the Great Depression affect international trade?

  Many economists have argued that the sharp decline in international trade after 1930 helped to worsen the Great Depression, and many historians partly blame this on the American Smoot-Hawley Tariff Act (enacted June 17, 1930) for reducing international trade and causing retaliatory tariffs in other countries.

  What was the US foreign policy during the Great Depression?

  The Great Depression and U.S. Foreign Policy. The Great Depression of the 1930s was a global event that derived in part from events in the United States and U.S. financial policies.

  Why was there a decline in international trade?

  Other nations increased tariffs on American-made goods in retaliation, reducing international trade and worsening the Depression. The quality of being self-sufficient, usually applied to political states or their economic systems that can survive without external assistance or international trade.

  How did the Smoot Hawley Tariff Act affect the Great Depression?

  In effect, the Smoot-Hawley Tariff Act “prolonged [the depression] and possibly deepened it around the world, not just in the United States but for other countries,” he says. Ultimately, this influenced the country’s long-term trade policies. Beginning with the Reciprocal Trade Agreements Act of 1934,…