There were several major causes of the Great Depression in the United States.
1. Unequal distribution of wealth. There was not a large middle class. 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.
2. There was over speculation in the Stock Market, which was not regulated. Many Americans purchased stock on credit. This was known as margin buying.
3. 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.
4. 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.
5. 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.
6. Banks were permitted to speculate in land and the Stock Market with little government regulations.
7. High tariffs and war debts helped spread the depression world wide.
8. The Stock Market Crash of 1929 signaled the beginning of the Great Depression.
Germany ceased reparation payments
rationed supplies
The Stock Market crash, structural weakness of the economy, overproduction, misdistribution of wealth and an international crisis contributed to the Great Depression in the United States.
Tariffs were raised. CAUSED manufacturers' sales overseas declined
Americans invested and spent beyond their means by taking out large loans.
Answer this question…Americans invested and spent beyond their means by taking out large loans.
rationed supplies
the great depression.
contributed to the great depression It contributed to the depression of 1837.
Which combination of factors contributed most to the start of the Great Depression of the 1930's?
The Stock Market crash, structural weakness of the economy, overproduction, misdistribution of wealth and an international crisis contributed to the Great Depression in the United States.
The Stock Market crash, structural weakness of the economy, overproduction, misdistribution of wealth and an international crisis contributed to the Great Depression in the United States.
many farmer suffers during the great depression such as sick,dying
Few houses were built during the Great Depression.
surpluses in farm production
The Great Depression and World War 1 unresolved issues contributed to the rise of the dictators of Mussolini, Hitler, and Franco.
Tariffs were raised. CAUSED manufacturers' sales overseas declined
It contributed to the fall of democracy in Germany, But not in the United States