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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.
The causes of the Great Depression in the early 20th Century are a matter of active debate among economists, and are part of the larger debate about economic crisis, although the common belief is that the Great Depression was triggered by the 1929 crash of the stock market.hus the unequal distribution of wealth throughout the 1920s caused the Great Depression. According to this view, the root cause of the Great Depression was a global overinvestment while the level of wages and earnings from independent businesses fell short of creating enough purchasing power.