What are the basic causes of the Great Depression after 1929?
To start off this response I must say that the majority of the problem did not follow from government interference, but partly from private innovators and the invention of banks financial instruments. In the private industry arena it was ill investment in high stake loans to people with absolute low incomes with unstable work, cheap accessible credit with high interest rates, get rich stock scheme's tying up investors money into one broker, and certain company decisions at the time that depressed some states. On the government side of the issue the precipice of the problem was the creation of the privately owned Federal Reserve, the introduction of Fiat money in our Monetary system, added business taxes to American industry, the creation of the IRS created a significant amount in poverty numbers, and inflation took a toll on agriculture prices along with Federal agencies regulating raw material use for consumer consumption. Consumer demands were not met cause of Federal regulatory agencies, to many high risk cheap loans and easy accessible credit was frivolously distributed to middle & lower class, tax brackets were high at the time, trade barriers severely cut profit in some industries, and major Wall Streets firm's connected to the Federal Reserve were able to receive capital injections to bet with other foreign banks. Herbert Hoover was a big spending conservative like that of Bush, and FDR similar spending budgets like that of president Obama.
Government allocation of private owned recourses created ill investment, drove down private sector employment for short term government employment, expanded Federal forestry and national parks, and drove up energy prices specifically coal and oil to due TR's nationalization of private owned land for newly created national parks. The progressive movements heavily mistook the elements of Corporatist policy for the vestiges of Capitalism, and set in motion to stop the supposed creators of exploitation of the worker, and make the worker principal factor to decide current policy of employment status, workers comp, and give workers full rights to counter act companies board decisions.
One key was greed, another ill investment, corruption, Milton Friedman's introduction of Chicago school of economics into Hoover's administration, and Federal Reserve Chairmans Benjamin Strong's policies at the time that inflated artificial bubbles in the stock market, propping up banks which defaulted on loans, and supplied the congress with budgetary quota's that could not be payed off by congress and formed into deficits. The mechanisms in business strategies simply were not making money, attracting consumers, stock buyers, brokers advice, or getting any type of capital to raise to stimulate the private sector, but were continually injected with large sums of Federal relief cash for certain periods of time. A word that goes well with this situation is Systemic Risk a government principle of breaking Free market principles, and implementing Keynesian economic theory readily available monetary funds, paper money, cheap credit with long term interest rates, and government assistance to bankrupt companies with partial ownership in it's stock. The proponents of Chicago and Keynesian economics were Fredrich Hayek, Murray N. Rothbard, Ludvig Von Mises, and well respected writer Gary North.
Causes of the 1929 Crash. Inflation, Cheap credit lent to consumers & investors with no long term income to pay off monthly dues, Fiat currency, minority quota's, minimum wage is unfair & bias, investors borrowing to much from brokers to invest in stock, the delay of the bankruptcy cycle, and communist influence.
