Many of the causes were linked

There are multiple aspects which led to the great depression of1920.one of the crucial was the stock market crash in 1929.early inthe 1920 consumer spending was at its highest peak in UnitedStates. Companies in America where usually producing gives in massamount and the consumer’s where purchasing the same. The failure ofthe banks led to the depression and vice versa. Those people hadtheir money in the bank’s lost their hard earned money. Deflationlead to the increase in real burden caused by the debt whichresulted in very less income of the forms as well as the householdsfor repayment of their debts. Deflation was an irresponsible act.Firms producing maximum quality was an irresponsible job from theirend. Consumer spending vigorously was an irresponsible act fromconsumers perspective. There were increase in defaulters as well asincrease in bankruptcy which resulted in failures of thousands ofbanks. the gold standard played a significant role in the spread ofthe great depression. The output and deflation was declining inUnited States gave rise to trade surplus as there in pots reducedand there were cheaper exports. This poses a threat to thedevaluation of currencies of those countries whose reserve of goldhad depleted. also reducing International landings and terrace hadcontributions to the great depression.