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.
It was the beginning of the great depression. I believe its also known as "Black Tuesday."
During the 1920s consumers which are the people buying, started to get more jobs. Real GNP growth during the 1920s was fast, 4.2 percent a year from 1920 to 1929. Real GNP per capita grew 2.7 percent per year between 1920 and 1929. And that caused consumers to buy more items. For Example: Ford's Model T.
Overproduction
The political, economic and social changes affected the daily life of Americans in 1920s to 1930s in a huge manner. The main event during this time was the Great Depression which had mainly been caused by World War I and this made the cost of living almost unbearable for most people.Ê
During the 1920s the farmers' debts increased as a result of the crash of the stock markets. This is the period in history which was known as the Great Depression.
we now have eggrolls and wontons
The United States economy was in recession due to the spending of World War I during the 1920s. This caused the Depression where there was a decline in real products.
The growth of the nation's economy during the 1920s was called urbanization.
The growth of the nation's economy during the 1920s was called urbanization.
Foreign countries could not afford to buy U.S. exports or repay U.S. loans.
It was the beginning of the great depression. I believe its also known as "Black Tuesday."
expansion
Only a few basic industries in America in the 1920s controlled the wealth. This lack of diversification contributed to the decline of the economy because when these industries weakened and sales fell tremendously, there were not yet other industries that were advanced and developed enough to counteract the damages made by the decline of these industries like construction and automobile sales.
i believe it was the farming industry
coolidge prosperity
Overproduction
During the 1920s consumers which are the people buying, started to get more jobs. Real GNP growth during the 1920s was fast, 4.2 percent a year from 1920 to 1929. Real GNP per capita grew 2.7 percent per year between 1920 and 1929. And that caused consumers to buy more items. For Example: Ford's Model T.