Causes of the Great Depression by Trevon Dawson https://padlet.com/trevonnad095/85m7mvsa3y79 en-us 2019-02-28 14:36:36 UTC 2019-03-01 15:54:06 UTC hello@padlet.com Boll Weevil boll weevil is an insect whose larva feeds on the cotton plant. While the pest is thought to have originated in Central America, by the 1890s it had made its way into Mexico and then into Texas. By 1915 it had migrated to Georgia and drastically reduced the state’s cotton crop. According to the New Georgia Encyclopedia, due to the destruction caused by the boll weevil, Georgia cotton farmers went from producing “5.2 million acres of cotton in 1914 to 2.6 million acres in 1923.” trevonnad095 https://padlet.com/trevonnad095/85m7mvsa3y79/wish/336413986 2019-02-28 14:41:00 UTC https://padlet.com/trevonnad095/85m7mvsa3y79/wish/336413986 Bank Failures bank failures During the 1920’s and 1930’s, there was no insurance protecting deposits. If enough of the banks customers tried to withdraw their money, the bank would eventually run out. This was called a bank failure. After the stock market crash, this actually happened and many banks failed in the early 1930’s. In turn many people lost their life savings. Those banks that managed to stay in business were hesitant about making loans, thus slowing down the purchasing power of big business and the individual buyer. Consumers lost their jobs and had no money to spend. With an unemployment rate of 25%, this further lessened the purchasing power of the average consumer. trevonnad095 https://padlet.com/trevonnad095/85m7mvsa3y79/wish/336423443 2019-02-28 14:54:28 UTC https://padlet.com/trevonnad095/85m7mvsa3y79/wish/336423443 Overproduction Of Agriculture Products Before the major droughts that hit the Midwest causing the Dust Bowl, many farmers over-produced. In the 1920’s Midwestern farmers produced record numbers of agricultural products. However, this over-production led to a tremendous drop in the price of agricultural products and dramatically limited the profit margins of farmers. During a period of time where millions were starving, farmers destroyed much needed food or stopped growing crops all together in order attempt to raise the price of agricultural products. A major drought hit the Midwest in the 1930’s driving thousands of farmers from their homes and added to the millions of Americans already out of work. trevonnad095 https://padlet.com/trevonnad095/85m7mvsa3y79/wish/336424897 2019-02-28 14:56:41 UTC https://padlet.com/trevonnad095/85m7mvsa3y79/wish/336424897 Reduction in purchasing Reduction in Purchasing: In what became a vicious cycle, after the stock market crash, and due to other economic fears, the average consumer stopped purchasing goods. When people stopped buying products, companies in turn lowered their production rates. trevonnad095 https://padlet.com/trevonnad095/85m7mvsa3y79/wish/336426130 2019-02-28 14:58:32 UTC https://padlet.com/trevonnad095/85m7mvsa3y79/wish/336426130 trevonnad095 https://padlet.com/trevonnad095/85m7mvsa3y79/wish/336891659 2019-03-01 15:43:27 UTC https://padlet.com/trevonnad095/85m7mvsa3y79/wish/336891659 trevonnad095 https://padlet.com/trevonnad095/85m7mvsa3y79/wish/336896509 2019-03-01 15:52:16 UTC https://padlet.com/trevonnad095/85m7mvsa3y79/wish/336896509