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Drought Conditions. While not a direct cause of the Great Depression, the drought that occurred in the Mississippi Valley in 1930 was of such proportions that many could not even pay their taxes or other debts and had to sell their farms for no profit to themselves.tock Market Crash of 1929. Many believe erroneously that the stock market crash that occurred on Black Tuesday, October 29, 1929 is one and the same with the Great Depression. In fact, it was one of the major causes that led to the Great Depression.
Effects Of The Great Depression. The Great Depression caused a myriad of changes in American society and economic policies, many of which linger to this day. Click here for facts about the effects of the Great Depression. Below are some of the primary effects of the Great Depression: Stock Market And Banking Regulations.