Factories used the assembly line, as a result prices droped, and businesses failed.
Buying on Margin
Farmers who borrowed money couldn't pay their debts which caused them not to be able to pay their mortgages.
Shaky Banking
Stocks became worth a lot more than the actual value of the company.
Restrictions on International Trade
UGHHNO!!
Buying on Margin allowed common people with little financial money to borrow money from their stockbroker and put down as little as 10% of the share value. This made companies get rid of their supplies. This meant that share prices suffered.
People with money in savings would deposit money which resulted in bank failure.
BANK
The Smoot-Hawley Tariff Act increased the import and export tariffs causing trade to slowdown resulting in a prolonged decline in stock market and overall economy.
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