The Great Depression

Monday, Febuary 22nd

Stock Market Crash

The great depression was caused by the stock market crash of 1929, bank failures, reduction in purchasing across the board, American economic policy with Europe, and drought conditions in what was referred to as the "dust bowl".

Bank Failures

In the 1930s over 9,000 banks failed and due to unsecured savings people lost there money. Do to this banks that survived were no longer willing to create loans. This caused the depression by limiting the money that people had to spend.

Reduction in Purchasing Across the Board

With the reduction in the purchasing there came less money into the economy. Which consequently caused even more damage to the economy plunging the country deeper into depression.

American Economic Policy with Europe

As businesses began failing, the government created the Smoot-Hawley Tariff in 1930 to help protect American companies. This charged a high tax for imports from foreign countries. The unintended consequence of this tariff was that less trade occurred between America and foreign countries. In addition, some countries retaliated economically against the US.

Manufacturing Overproduction

As farmers lost land manufacturing production sored and the consumers were purchasing more than they could by thier own means. So thier debt rose then people lost there money that's was invested and production still continued create an over abundance of products that were no long being sold do to people no longer having the money to spend. But the large spending people that owned businesses started loosing money do to overproduction and no longer large sales.
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