Causes & Effects of the Great Depression by Ryan McEathron

Credit Expands

ryanm5_ — 2023-11-14 14:57:58 UTC

People who couldn't afford items, products, or goods set up payment plans with venders and lenders to pay the plan over time instead of paying in full at one time.

German Reparations

ryanm5_ — 2023-11-14 14:59:47 UTC

Due to the Treaty of Versailles, Germany was forced to pay reparations they couldn't afford. Causing them to print more money which raised inflation.

American Industry Dominated

ryanm5_ — 2023-11-14 15:01:31 UTC

The Europeans were too reliant on America's industry and economy. If America was to tank, the rest of the world would follow.

Stock Market Crash of 1929

ryanm5_ — 2023-11-14 15:01:58 UTC

Caused by a overproduction, speculation, and a lack of government regulation. The crash resulted in a widespread panic among investors, which led to a sharp decline in stock prices. The crash is widely considered to be the beginning of the Great Depression.

High Protective Tariffs

ryanm5_ — 2023-11-14 15:02:18 UTC

President Hoover and Congress implemented higher tariffs on European goods, so citizens would buy American made products. The Europeans turned around and put tariffs on American goods which made global trade drop.

High Unemployment

ryanm5_ — 2023-11-14 15:11:29 UTC

Businesses could no longer afford employees. 1 out of every 4 Americans had no job.

Bank Failures/Collapse of Credit

ryanm5_ — 2023-11-14 15:11:42 UTC

Due to the Stock Market Crash, masses of Americans tried to pull out their money from banks. Since banks invested their money into the Stock Market, many Americans lost their life savings over night.

Collapse of Products in World Trade

ryanm5_ — 2023-11-14 15:12:15 UTC

Due to the tariffs instilled by countries, no one could afford each others products, and world trade decreased by 65%.

Nazi Party Grows and Jews are Blamed for Economic Failures

ryanm5_ — 2023-11-14 15:12:25 UTC

The Nazi Party needed a scapegoat to blame for the economy so they could rise and power. The main peoples blamed for the failures of Germany were the hebrews.