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How did big businesses during the 1920s contribute in the causes of the Great Depression?
Wiki User
∙ 13y ago
Increased manufacturing and agricultural output, but wages that did not keep pace for the consumers to purchase all that was produced or grown. Hence, inventories increased and agricultural income remained low.
While wages were rising for the majority of workers, they were not keeping pace with the increase in the cost of living or the wealth in the hands of the industrialists and others in the upper income classes.
Business developed buying on credit, known in the 1920s as installment buying. People purchased things like refrigerators on time, and did not have money to pay for the product in the future, when the bills became due.
Federal regulations on businesses also contributed to the cause. Especially favorable to the large corporations were the taxes laws which were written
to encourage business expansion.
Wiki User
∙ 13y ago
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What was the relationship between government and business during the great depression?
There were no government incentives for businesses.
Why did businesses fail after housing fell off during great depression?
Businesses closed during the Great Depression because they weren't realizing the revenue the needed to remain operational. During this time people weren't working so they couldn't spend money they didn't have.
Why did many businesses fall during the Great Depression?
Profits were down because customers had no money.
Was working at the great depression easy to earn money?
It was difficult to find a job during the Great Depression. Many businesses closed, or have to reduce operations. About 1 in 4 people had no job. Not easy at all.
Which of these rose during the great depression?
Migration rose during the Great Depression.
What was the relationship between government and business during the great depression?
There were no government incentives for businesses.
Why did businesses fail after housing fell off during great depression?
Businesses closed during the Great Depression because they weren't realizing the revenue the needed to remain operational. During this time people weren't working so they couldn't spend money they didn't have.
Which president chose to give aid to businesses rather than people during the great depression?
Hoover
How many businesses failed during Great Depression?
In the Great Depression, over 11,000 banks failed, and over one million family farms were lost.
How is dust bowl and Great Depression alike?
The dustbowl is a nickname for the Midwest during the great depression. I is one factor that causes the great depression because of the shortage of food.
Why did many businesses fall during the Great Depression?
Profits were down because customers had no money.
Was working at the great depression easy to earn money?
It was difficult to find a job during the Great Depression. Many businesses closed, or have to reduce operations. About 1 in 4 people had no job. Not easy at all.
How did the automobile economy have a problem during the great depression?
During the Great Depression in the US, almost all businesses were hurt by this serious economic downturn. This included US auto manufacturers. With unemployment rates near 25%, car sales were hit hard, and as with other industries there were layoffs of workers.
What was a market during the great depression?
There was a Msrjet Crash during the great depression.
Which of these rose during the great depression?
Migration rose during the Great Depression.
Did they have bicycles during the great depression?
Yes, there were bicycles during the great depression.
What was the state of the city of Chicago during the great depression compared to that of organized crime?
* For Organized Crime it was business as usual. * For the ordinary citizen it was a world without jobs and failing businesses.
