Causes & Effects of the Great Depression by Paige Rainey

Credit Expands

paigeb13 — 2023-11-14 14:54:21 UTC

Credit expansion is where people buy things they can not afford. During the Great Depression everyone used credit, and no one had enough money to pay their loans back.

Reparations

paigeb13 — 2023-11-14 14:55:49 UTC

Instead of tax the german citizens had to pay reparations. When Germany borrowed money from the US, and they went further into debt. The Americans demanded that Germany pay them back. Even though Germany's economy was already fragile with their failing banks and the rising of unemployment

The American Industry was too dominant

paigeb13 — 2023-11-14 15:01:45 UTC

Because the American Industry was too dominant factories closed, mills and mines were abandoned, and fortunes were lost. Also, businesses were unable to help themselves, so the Americans looked to the federal government

Stock Market Crash

paigeb13 — 2023-11-14 15:22:11 UTC

In 1929, US Stocks crashed and businesses and banks also closed because of overinflated shares, growing bank loans, panic selling, higher interest rates, etc.

High protective Tariffs

zaniyac — 2023-11-14 15:26:57 UTC

A tariff is a tax imported goods and made it hard for countries to trade with each other. During the great depression

High unemployment

paigeb13 — 2023-11-14 15:28:05 UTC

During the height of Great Depression there were over 12,830,000 people unemployed. People that invested money in the stock, lost their money, which caused them too stop spending money on goods and services. Since businesses were experiencing a fall in spending

Collapse of products in world trade

paigeb13 — 2023-11-14 15:33:53 UTC

During the Great Depression the decline in stock markets affected the consumption and production in various countries, which slowed international trade and started the depression

Growth of Nazi party and blame of jews for economic collapse

paigeb13 — 2023-11-14 15:35:14 UTC

Hitler blamed all the jews for the Great Depression during WW1

Bank failures/Collapse of credit

paigeb13 — 2023-11-14 15:35:45 UTC

Smaller banks lacked sufficient reserves to stay in business and became less convenient. Many of the small banks put in large portions of their assets to stock markets, so when those markets crashed the banks went out of business.