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causes of the great depression

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causes of the great depression
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  • Overproduction- Industry
  • No one has the money to buy these cars!!! What are we going to do !?
  • Over Production - Farms
  • Because I made so much , The prices on my goods will start to go down 
  • Speculation
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  • Because of overproduction , the price on goods started to go down really quickly as there was more supply than demand .Companies were forced to lay off workers as a result
  • Buying on Margin
  • The Stock Market Crashed and I don't know what to do with all the calls coming in 
  • overproduction in agriculture caused prices on goods to decline. Leaving farmers unable to repay their debts from the war
  • Shaky Banking
  • I've got to hurry and get my money out of the bank!!
  • People were speculating about value of stocks and rushing to buy more and become rich.
  • Restrictions on international trade
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  • Buying on Margin was putting 10% down from the buyer, the rest is financed from the bank. As stock sales made prices fall, brokers demanded loan repayments from investors who had bought on margin. Forcing them to sell their stocks
  • Banks were making bad investments and companies were going out of business . When people lost their saving it was game over . In an attempt to save their money people would make bank runs (running to the bank to withdraw money)
  • Restrictions on international trade were made to encourage people to buy American made goods. This helped cause thee great depression because Other countries did not want to pay the expensive tariff, so there were no buyers for our overproduction
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