Great Depression Dbq
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in 1930 and lasted until the late 1930s or middle 1940s.
The stock market crash was the beginning of the Great Depression but it was not solely the main cause of it. There was many different causes of the Great Depression like diversification and how the there was too few industries that could not handle the demands of the economy. Another big part of the Depression was the weaker consumer and how the businesses seemed to be taking more of the profits and giving the employees less to live on. The last cause is the increase in debt, people could not …show more content…
(2011). A history of the United States since 1865. San Diego, CA: Bridgepoint Education, Inc.
The Great Depression was a very struggling time for Americans. Some believe the Stock Market crash caused the Great Depression but according to Bowles, “in reality, it was not the sole cause,” (2011). As there were more causes for the Great Depression, three of them were:
1) (1) Diversification- where the few industries the economy depended on were disintegrating faster than other industries could grow causing more economic problems.
2) (2) Increasing Debt- Without jobs, people could not afford to buy what they needed so they purchased their goods on Margins- or credit, and not enough wages to pay them back. Which eventually caused the American financial system to collapse because they gave loans to people who could not afford to financially afford to pay them back and could not turn to the stock market to make up for their losses because it had crashed.
3) (3) Economic World-Wide Collapse- where the collapse of the economy became a world problem because of things such as the Hoover raising taxes with the Hawley-Smoot Act of 1930, which increased taxed on imported goods. This put a strain on other nations because they could not afford the higher taxes forcing many small businesses to …show more content…
They can be bought and sold by public or by other businesses. Starting around 1925 the price of stocks began rising to high levels. Investors kept buying, in hope prices would go even high. In 1929, many of these investors started selling and stock prices fell rapidly.
The Federal Reserve System
This is the nation’s central bank, set up by the government in early 1900s to help banks across the country operate properly. It also controls the nation’s money supply, and inspects the financial records of banks to make sure they are being run correctly. In 1930 and 1931 the Federal Reserve did not act quickly enough to help the banks that were failing all over the country.
High tariffs discourage international trade
In 1930 congress voted to raise tariffs on products imported into the US. A tariff is a tax on imported products, such as clothes, food products, or shoes. Business leaders wanted the high tariffs as a way to protect their companies from the competition of lower cost foreign products. Tariffs made the importes goods more expensive. The high tariffs were a disaster, overall world trade went down and that hurt American economy, that was already in serious
The stock market crash was the beginning of the Great Depression but it was not solely the main cause of it. There was many different causes of the Great Depression like diversification and how the there was too few industries that could not handle the demands of the economy. Another big part of the Depression was the weaker consumer and how the businesses seemed to be taking more of the profits and giving the employees less to live on. The last cause is the increase in debt, people could not …show more content…
(2011). A history of the United States since 1865. San Diego, CA: Bridgepoint Education, Inc.
The Great Depression was a very struggling time for Americans. Some believe the Stock Market crash caused the Great Depression but according to Bowles, “in reality, it was not the sole cause,” (2011). As there were more causes for the Great Depression, three of them were:
1) (1) Diversification- where the few industries the economy depended on were disintegrating faster than other industries could grow causing more economic problems.
2) (2) Increasing Debt- Without jobs, people could not afford to buy what they needed so they purchased their goods on Margins- or credit, and not enough wages to pay them back. Which eventually caused the American financial system to collapse because they gave loans to people who could not afford to financially afford to pay them back and could not turn to the stock market to make up for their losses because it had crashed.
3) (3) Economic World-Wide Collapse- where the collapse of the economy became a world problem because of things such as the Hoover raising taxes with the Hawley-Smoot Act of 1930, which increased taxed on imported goods. This put a strain on other nations because they could not afford the higher taxes forcing many small businesses to …show more content…
They can be bought and sold by public or by other businesses. Starting around 1925 the price of stocks began rising to high levels. Investors kept buying, in hope prices would go even high. In 1929, many of these investors started selling and stock prices fell rapidly.
The Federal Reserve System
This is the nation’s central bank, set up by the government in early 1900s to help banks across the country operate properly. It also controls the nation’s money supply, and inspects the financial records of banks to make sure they are being run correctly. In 1930 and 1931 the Federal Reserve did not act quickly enough to help the banks that were failing all over the country.
High tariffs discourage international trade
In 1930 congress voted to raise tariffs on products imported into the US. A tariff is a tax on imported products, such as clothes, food products, or shoes. Business leaders wanted the high tariffs as a way to protect their companies from the competition of lower cost foreign products. Tariffs made the importes goods more expensive. The high tariffs were a disaster, overall world trade went down and that hurt American economy, that was already in serious