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After the  first World War United States was in a great economic place, they took advantage of all the potential markets Germany and Britain had left and they started to supply products to them

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This gave United States the chance to explore and work with new techniques of marketing such as persuading people to buy new products and full products of mass

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The way of making money was by stocks , shares and selling installments but at some point prices began to increase and econy was decreasing.

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Happened on October of 1929, USA started selling more actions that they could support.

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About 9,000 banks fail losing people savings.

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Reduction in Purchasing Across the Board

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Reduction in Purchasing Across the Board

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People from all classes stopped purchasing items so the production of the items decreased making many people lost their jobs, about 25% of people were unemployed.

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The businesses began to fail so the government created the Hawley-Smoot Tariff in 1930 to protect the American companies making the trade between U.S and the foreign countries reduce because the government raises the taxes.

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The drought occurred in the Mississippi Valley in 1930 several people were not able to pay their taxes due to other debts. So they had to sell their farms without gaining any profit, moving to the cities to looked for jobs.

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The depression affected most of the countries

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There was a sharp reduction in tax revenues, profits and personal incomes. It affected both countries that exported raw materials and industrialized countries.

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In Germany, weak economic conditions led to the rise to power of Adolf Hitler.

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The Clayton Anti-Trust Act

An act that strengthened the power of government in dealing with monopolies. Forbidding agreements between companies to fix or control prices for lessening competition and prohibiting individuals from serving as directors of competing corporations.

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Anti-Trust Act

An act that declared illegal any business combination that sought to restrain trade or commerce.

Penalties of $5,000 or year’s imprisonment

The main reasons was the vague wording of the legislation and the absence of a strong independent commission for its enforcement.