Causes of Great Depression Period 4 by Dean Owens https://padlet.com/dowens11/5ipc0yfd14bg Textbook Notes en-us 2017-12-04 12:00:55 UTC 2025-11-09 23:26:42 UTC hello@padlet.com https://padlet.com/dowens11/5ipc0yfd14bg/wish/212896505 People withdrew their money from banks, but banks didn't have enough money to give out. Investors ran to banks as well, taking what little money the bank had left, forcing them to close.]]> 2017-12-04 15:23:03 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212896505 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212896547 - Farmers made up 1/4 of the American workforce 
- To meet  crop demands farmers increased their land size and bought expensive equipment
- This caused the farmers to have large debts that followed them into the 1920's 
- Farmers relied on credit 
- when the economy struggled, farmers were hit first and the hardest]]> 2017-12-04 15:23:08 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212896547 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212896647 More than 60% of all American families had yearly incomes of less than $2,000 per year.

]]> 2017-12-04 15:23:17 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212896647 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212896718 -Demand for crops dropped immensely.
-Post-war production remained high due to the use of machines and intensive farm methods.
-Farmers could not  sell a huge proportion of their crops, therefore they couldn't pay their debts. This resulted in a rural depression.
-Farmers did not thrive during the 1920s', and did not have the cash to buy consumer goods.]]> 2017-12-04 15:23:27 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212896718 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212896832 Not enough money in circulation to support the economy after the market crash.]]> 2017-12-04 15:23:38 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212896832 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212897502 In contrast, 24,000 of the county's wealthiest families enjoyed annual incomes of more than $100,000, which was 50 times more than what most families earned.]]> 2017-12-04 15:24:36 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212897502 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212897957 The Stock Market Crash of 1929 sparked a chain of events that led to the collapse of the American economy.

]]> 2017-12-04 15:25:19 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212897957 Families did not have the money to buy what they needed or wanted https://padlet.com/dowens11/5ipc0yfd14bg/wish/212898208 A healthy economy needs more people to buy more things to create more even weath.]]> 2017-12-04 15:25:42 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212898208 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212898219 2017-12-04 15:25:43 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212898219 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212898249 People gambled in the stock market money that they didn't have]]> 2017-12-04 15:25:45 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212898249 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212898571 As the market started going down, people were scared and sold their stocks at a discounted price]]> 2017-12-04 15:26:16 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212898571 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212898640 -Since many people purchased Model Ts, industrial laborers were in a good financial place.]]> 2017-12-04 15:26:23 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212898640 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212898895 Prices kept falling, and within a matter of days was "Black Tuesday", which was when millions of shares were sold, the market had crashed within a few hours]]> 2017-12-04 15:26:46 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212898895 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212899083 -The problem was that while wages rose gradually, worker productivity increased astronomically. Americans were working 32% harder but only making 8% more money.]]> 2017-12-04 15:27:05 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212899083 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212899557 2017-12-04 15:27:47 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212899557 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212899720 -Corporate profit from workers skyrocketed 65%, causing the rich corporate workers to become much, much richer, while industrial workers simply became a little less poor.]]> 2017-12-04 15:28:02 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212899720 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212899759 For a time the expansion of credit hid this problem]]> 2017-12-04 15:28:06 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212899759 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212899796 Americans would buy big items putting only a small payment down paying the rest off in the next months relying on credit. ]]> 2017-12-04 15:28:09 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212899796 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212900263 The international economy was funded mostly by American loans to European countries. This meant that the depression in America lead to an economic depression around the world.]]> 2017-12-04 15:28:40 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212900263 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212900281 Tariffs were made to protect American goods from foreign competition. The Hawley-Smoot Tariff was passed in June 1630, making tariffs so high that foreign competitors could not compete. The effect was that European countries retaliated with high tariffs of their own.]]> 2017-12-04 15:28:42 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212900281 In August of 1931, Henry Ford closed several of his Detroit automobile factories putting nearly 75,000 people out of work. https://padlet.com/dowens11/5ipc0yfd14bg/wish/212900552 2017-12-04 15:29:02 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212900552 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212900697 Tariff was one of the causes of a depression spreading across the globe, another was war debt payments and international imbalance of trade.   ]]> 2017-12-04 15:29:16 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212900697 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212900826 Business leaders believed that the survival of their companies depended on production cutbacks, to maintain price levels, and layoffs, to reduce payroll..]]> 2017-12-04 15:29:27 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212900826 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212901204 The top 1% of the wealthiest people made as much as the 42% of least wealthiest people]]> 2017-12-04 15:29:53 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212901204 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212901249 Americans even bought stock on credit,making such purchases on margin]]> 2017-12-04 15:29:56 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212901249 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212901507 In 1929, the wealthiest 1% of the population earned about the same amount of money as the bottom 42%.]]> 2017-12-04 15:30:23 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212901507 In the past , they feared debt and waited to buy goods when they had all the cash to pay for those items https://padlet.com/dowens11/5ipc0yfd14bg/wish/212901653 2017-12-04 15:30:37 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212901653 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212901899 Hawley Smoot Tariff added to the issues, American manufacturers had many unsold products. This impacted the global economy and damaged international trade]]> 2017-12-04 15:31:01 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212901899 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212902216 Companies began closing plants and forcing workers onto the growing ranks of unemployment.]]> 2017-12-04 15:31:30 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212902216 The growing credit burden could mask the problem of Americans living beyond their means https://padlet.com/dowens11/5ipc0yfd14bg/wish/212902431 2017-12-04 15:31:49 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212902431 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212903255 The problem of production cuts got bigger and bigger.]]> 2017-12-04 15:33:09 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212903255 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212903762 Nearly 25% of all American workers had lost their jobs.]]> 2017-12-04 15:34:03 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212903762 https://padlet.com/dowens11/5ipc0yfd14bg/wish/212904723 People's fortunes got wiped out from this crash]]> 2017-12-04 15:35:42 UTC https://padlet.com/dowens11/5ipc0yfd14bg/wish/212904723