We kept presenting today. We also went over why the stock market crashed.
What were the cause of the G.D?
Causes
- Stock market crash
- Bank Failures
- Reduction in purchasing across the board
- American economic policy with Europe
- Drought conditions
Stock Market Crash
- one of the major cause
- couple of months after the crash in October, Stockholders lost more than $40 billion
- Thought the stock market regained some of its losses, it was no enough by the end of 1930
Bank Failures
- 1930's over 9000 banks failed
- Deposits were uninsured as banks failed people lost their savings
- The banks that survived were unsure of the economic situation concerned for their survival stopped being as willing to create new loans.
Purchasing Across the Border
- Everyone stopped buying items because they feared that ore economical problems would occur
- This led to a reduction in numbers of items made and reduced he workforce
- People started losing their jobs and were unable to pay for items they had bought
- They bought through installment plans
Economic Policy with Europe
- Business began falling
- Government created the smoot-Hawley Tariff
- To protect American companies in 1930
- Charged a high tax for imports
- Led to less trade between America and other countries
Drought Conditions
- Caused people not to pay their taxes, and debts
- People had to sell their farms for no profit
- Era names the Dust Bowl
- Dust Bowl
- Dust storms, and destroyed part of ag production
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