Reasons+for+The+Depression+ZH

A few of the other causes of the Depression where: The failure of the banks due to the multitudes of people rushing to the banks to withdraw their money because they feared there bank would fail, and at that time period the deposits were not insured, so banks stopped loaning money to people fearing if they did they would fail.

After the crash of the stock market the purchasing of goods declined all across the board because people were afraid to spend their money not knowing were the economy was headed and how the stock market crash and bank failures were going to turn out. With the lack of people purchasing items production had to slow which caused the work force to diminish and caused many men to loose their jobs lowering income further and further lowering the purchasing of goods.