The Famous Picture of Great Depression What were the causes of the Stock Market Crash and Great Depression?
Stock- its when you buy part of a business People believed that they would never lose money in this business.
Stock Market crashed between 32 and 33, when Hoover was president. when government stopped spending money it went down Dow Jones is a stock market indicator
Causes of Stock Market:
: -uneven sharing of wealth
- not enough people buying things
-wages couldn't keep up with productions
-increase in gambling and buying stocks
-Tight Money Policy - Buying on Margin
- getting a loan from a broker
-making to much or not enough
- big gap between rich and poor
-shading banking
- they invested people money and put it in the stock market
- buying on credit
- debt
- overproduction of farm products
-Laize fare approach
-over speculation
Causes of Great Depression:
- Stock Market Crash
-Banks were failing
-Reduction in purchasing
- people lost jobs so they stop spending money
- businesses didn't have money so they raised money
- money supply was decreasing
-American Tariff Policy
- putting tariffs on products from Europe
- hurt more than helped
- Smoot- Hawely Tariff
- Caused Europe to add tariffs to their things.
-Drought
- Great Plains
- Dust bowl - huge dust storms
- no crops could grow
- they all just left to city
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