Myth or Fact: Great Depression

Was the Great Depression caused by the failure of the free market? Was it resolved by the government stepping in and creating new programs? It is a myth that these things happened. The Great Depression was not caused by the free market failing and the government stepping in did not completely resolve the whole thing. The Great Depression was caused by many different things. One things people believe that caused it was the Stock Market Crash of 1929 on Black Thursday. Also another is the banks started to fail. The banks were uninsured so people lost all their savings. A lot of people had nothing. A big one is that people stopped spending. The economy basically stopped because everyone stopped spending their money on things. The big cause of the depression was probably the fear people had of losing everything they had and not having enough food. What resolved the Great Depression was America joining World War II. With the war spending began to happen. America was spending money on equipment needed in the war. With so much spending going on the economy started again. people were provided more jobs. Money was circulating through the economy. This is what ended the Great Depression. Even though people may believe that the free market is what caused the economy to fail and that government intervention is what stopped the Great Depression, it is a myth. There were many different reasons that it happened. Even though government did try to save the economy by intervening it was really the war that brought the Great Depression to an end.