Causes of the Great Depression
Josh
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The banks were the foundations for the depression. they led the way in bad decisions and playing the stock market sending the people who had placed their money with them into a downwards spiral until their money was lost into oblivion. The uneven income distrubution was not as higher factor as this concerned a minority and could be easily got around through cheaper prices, commen sense and good marketing.
Republican economic policy encouraged spending and did not control the banks properly.
Market saturation meant factories overproduced. As they lost profit they laid off workers or cut wages
Farmers' incomes were falling due to overproduction. They could not pay their mortgages which put rural banks out of business.
The slow down in the construction industry put many people out of work which meant they weren't spending.
Uneven income distribution meant many people could not afford the new consumer goods making market saturation worse.
High tarrifs meant farmers could not sell their produce abroad as other countries could not sell their goods in America so they had no dollars to buy American goods.
Banks were playing the stock market with customers' money so when the market collapsed they went out of business.
People were over investing in the stock market and not using their money to buy goods.
Share prices were far too high so when selling started more and more shares were sold leading to a collapse of the stock market.
