What economic conditions of the late 1920s caused the Great Depression? Notes #46

1. What economic conditions of the late 1920s caused the Great Depression? Notes #46

2. The Great Depression was a period of economic hard times for the U.S. from 1929 to 1941 and was caused by many economic conditions of the late 1920s.

3. One cause was that Americans began spending less and an overproductionof goods occurred, . . .

4. . . . which resulted in lower prices for goods, lower wages for workers, and increased unemployment.

5. Consumers spend less Businesses cut investment and production Wages are cut or workers are laid off

6. A second cause was an uneven distribution of wealth in the U.S., which created an unbalanced economy. During the 1920s, 1% of the U.S. population owned 59% of its wealth ** Today, 1% of the U.S. population own 38% of its wealth **

7. A third cause was the decline of foreign trade, which was a result of the U.S. government placing high protective tariffs on foreign goods.

8. A final cause was excessive speculation in the stock market, which artificially drove stock prices up.

9. When stock prices began to fall in 1929, many Americans panicked and sold their stocks, which caused the Stock Market Crashof 1929to occur.

10. As a result of this Crash, most money was lost that was invested in stocks and many banks in the U.S. shut down when loans went unpaid.