1 / 8

What were the causes of the Great Depression?

What were the causes of the Great Depression?. Kenzie Goshorn. Stock Market Crash- 1929. Black Tuesday (October 29, 1929) Stock market had been going up since 1922 (20% per year) “Buying on margin”. Bank Failures. Banks investing money in stock market Bank accounts uninsured

chyna
Download Presentation

What were the causes of the Great Depression?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. What were the causes of the Great Depression? Kenzie Goshorn

  2. Stock Market Crash- 1929 • Black Tuesday (October 29, 1929) • Stock market had been going up since 1922 (20% per year) • “Buying on margin”

  3. Bank Failures • Banks investing money in stock market • Bank accounts uninsured • Throughout the 1930’s- over 9,000 banks closed • Surviving banks- stopped being as willing to create loans

  4. Overproduction/Underconsumption • Unemployment rose above 25% • People from all classes stopped purchasing items • Factories produced too many goods • Factories lost money because of underconsumption • Cycle continues

  5. American Economic Policy with Europe • Government created Smoot-Hawley Tariff (1930) • Purpose- to help protect farmers against agricultural imports • Massive agricultural overproduction in 1920’s- led to declining farm prices • Raised US tariffs to historically high levels (around 40%) • Led to less trade

  6. Drought Conditions • Not a direct cause • Mississippi Valley (1930’s) • Many could not pay taxes or other debts • Had to sell farms with no profit • “Dust Bowl”

  7. Summary The stock market crash of 1929, bank failures, overproduction and underconsumption of products, the American economic policy, and drought conditions were all causes of the Great Depression. While some of these reasons played a bigger part than others, all were contributing factors of the Great Depression.

  8. Sources • Kelly, Martin. "Top 5 Causes of the Great Depression." About.com American History. About.com, n.d. Web. 11 Jan. 2014. • "Causes of the Great Depression." Causes of the Great Depression. Bigmate, n.d. Web. 14 Jan. 2014. • "Smoot-Hawley Tariff Act (United States [1930])." Encyclopedia Britannica Online. Encyclopedia Britannica, n.d. Web. 12 Jan. 2014.

More Related