What were 3 causes of the Great Depression?

Answer 1

"INFLATION" (over)_TAXING (=organized theft):

is the major cause (of debts,

that were never intended to be paid back,

because no date was set & held)!

Endless debts (increasing): to pay government & politician's salaries,

was the result.

The crash happened when the years of interest (rate)

got too big, for further debting.

Everything else is a lie.

It caused "high prices";

for (unneeded) overproduction;

& (bad weather) drought (losses).

The drought only made things worse, when everything was already bad enough.

High prices & overproduction were (stupid=naive) attempts to (try to) get out of debt!

They failed for 1 simple reason: most people were (already, forced) in(to) debt.

Why? Because of taxes.

How could they possibly buy expensive things? Especially more than they needed, in difficult times. Absolute stupidity for a solution. But..

When money gets scarce, people don't think right, very far,

& are thus not reasonable (enough, to get out of their problems, for good).

--

America's Declaration of Independence

was for stopping the England King's (robbing) taxes (="takes").

Royal "theft" was considered good business.

Complaints could be punished by death (or jail),

using his army against a farmer.

(By the way:)

What final result can you expect, from a stealing country? (Downfall, & corruption!)

It's 1 thing to "give" (gifts) free willingly, in love & peace;

but it's a completely different thing to be "robbed" (=stolen from) by somebody very powerful or cunning.

Both look like the same result (transfer of goods);

but they are different as: punches & kisses, rape & marriage, love & hate, sick & healthy, dead & alive.

But few (people) notice the difference (between tax & giving) anymore. Nobody complains.

They've all gotten used to the way things have been, the orders & demands from above.

If the 1st theft didn't kill you, the next 1 might when they want more.

This earth offers us everything.

Why can we not function on a positive giving basis; instead of a stealing taking (taxing) system?

"Because not enough (people) are giving. Let's tell them to give more!"

Our politicians won't tell us the truth, they have too many secrets.

Big businesses lie with their yearly financial report.

Some companies fire (people) at the year's end;

& hire after new years, (just) to look good (expanding).

--

The early new American farmers were being robbed from, by the king('s men),

& forced into (unbearable) poverty.

(Try to pay off your debts now.

If they (=your debts) get too large,

they'll kill you,

because the interest (amount) gets too large.)

People love getting interest,

but paying back borrow_interest is >2x more expensive.

If you're receiving (much) bank interest,

somebody is loosing (much more).

(Henry Ford expected a civil war

if workers ever learned how banks really work:

having only 10% real money from what they claimed (to lend).

The rest (90%) is a lie (I.O.U.s=I owe you( note)s; not real dollars, =re_lent).

However.

Years of the country's increasing debt,

(accumulated) leeding to the "point of no return",

the interest "amount became too high" to pay back.

Snowball banking is illegal but it's done every day & year, with inflation.

War was declared to destroy everything, including the debts.

Politicians love inflation,

to trickle money back into their funds.

But they like debts more,

because they can spend money that does not exist (=they don't have).

Meaning somebody else (like you & I, or our children later) has to pay(back). (Some pay with their life, if war breaks out, then.)

They (=politicians) push off payback

into the future. Nobody knows when, so it goes on forever.

It's the easiest way

to devalue the people.

The value of the dollar decreases,

in order to pay the politicians (= the country's debt makers')

salaries.

Later, you can buy less (food), so they can buy more.

In the end, nobody notices the deal.

About, what it's all about.

Wars happen because the country's debt gets out of control.

--

A debt means, intended to "payback";

but if they cannot say when that will happen,

then the politicians do not intend to (ever) payback,

because it is NOT possible.

If they could say at the first when payback is possible, before even borrowing,

then it would be obvious, whether possible, or not.

But since no date is given, payback is agreed (by everyone) as impossible.

So they push off payback into the (unknown) future (with no date).

Somebody else has to payback after they retire, but their salary was paid with the debt.

--

Please remember, these are well paid jobs, & there are many people;

but not all those jobs improve the country's (& world's) wealth.

They are not self paying,

bringing in more than the (worker's) payment,

because those people are not competent (enough) for that (=their payment);

& many jobs are not designed to do that (surplus).

Large farms do that (surplus), but not government jobs.

--

The small person always pays.

A bank will not lend somebody money unless a payback plan begins immediately, with a date.

Try to buy a house, & pushoff (bank) payback (start), for years. They won't finance you.

--

(After war is declared,)

Then mass murdering happens.

& nobody can stop it,

because the cause has been hanging around for years!

(Increasing) Debts!

& Nobody can get rid of them.

Because there are too many of them.

Everywhere.

It's inescapable.

Don't believe what they told you in school

(about the depression caused by drought.

People (simply) get nasty if you owe them money & can't pay,

because then they can't pay others either.

& the chain reaction goes on, to avalanche.

If 1 person goes broke, it doesn't matter.

If several people go broke, it also doesn't matter.

If 1 bank goes broke, it doesn't matter either.

But if many banks go bankrupt, then

criminality increases (=a civil war starts),

complaints, damages & losses increase.

Finally real war breaks out.

Some idiot (like a Hitler) makes (other) priorities,

ignoring lives,

as a simple solution

out of debts

& problems.

Nazi's robbed Jews, because they had money.

Advice:

Pull the country out of debt,

by pulling yourselves out of debt

(if you can, before it's too late).

The politicians

should hire the best financial experts (on Earth)

to get the countries out of debt

& solve the problem (for good).

The world currency should be made (into "real") gold (mass)

& other noble metals (to stabilize value); but

not new (virtual) names that can drift in value & meaning

such as dollar, yen, Euro etc.

Mass does not change, over the years, it's always the same.

Noble metals have the highest positive electronegativity,

& affect the emotions positively,

(thru the (almost) zero_crossing detector eye)

that is why they (=noble metals) are so valuable.

Lead (Pb) & Iron are not like that,

so the value has nothing to do rarity.

In German "debt" means "guilt" (Schuld).

If you are "in debt", you are "guilty" (Schuldner);

because you don't "have good" (Guthaben).

(In English: you are (or have) "no good". From the song "Hit the road Jack" by Wolfman Jack. ~"useless".)

Debt is a sin!:

If you go into debt,

it means you've done something wrong.

email: PS20100401@gmx.de

Answer 2

Deflation

The Great Depression, which generally is considered to have begun with the Stock Market crash in October 1929, changed the way America worked. At the end of the Roaring Twenties when the stock market and the economy soared, the crash appeared inevitable in retrospect. More goods were being produced than were needed, and without people to buy them, jobs disappeared. The event was a part of a spiral that ended with production of materials for World War II.

DemandDuring the 1920s, the United States was furiously producing products from automobiles to radios that were being purchased largely on credit. By 1929, the markets were saturated with such products and demand began to fall. Because of the runs on banks and the frantic sell-off of stocks, credit became hard to get even for those wanting a new car. Once there was a major backlog of products no one was buying, there was little money coming into the companies that made the products. This resulted in massive layoffs of workers throughout the country. UnemploymentBecause no one had any money to buy products, the people who built the products were out of work. They also had little money to buy anything, and the spiral continued. Social programs were not government-run at the time, so there were few places to turn to for help other than religious and other charities. They, too, were strained by the sheer numbers of people turning up for bread and soup. The companies had no money coming in, so many of them folded. Those that remained had few workers. By 1933, nearly 25 percent of the workforce was unemployed.