Notes
Great Depression Causes:
Black Tuesday
USA 1920's Extra points
- Over production
- Stock market (buying on margin)
- Tariffs and this lowered trade (tax on international trade)
- International debt
- Weak European economy
Black Tuesday
- Dow Jones industrial average collapsed
- Continued selloff took place until 1932 when the DJIA was 89% of its 1932 peak
- People throw themselves out their buildings
- Businesses go bankrupt
- Banks close
- Depression begins
USA 1920's Extra points
- High tariffs- success for US business, part of isolationism
- Laissez-faire capitalism- private ownership with little infringements from the government (Hoover's idea of Free Enterprise)
- Overproduction of a major cause for both agriculture recession and stock market crash
- Government restrictions on immigration, particularly Asians during this period
Summary
Overproduction was a major cause of the stock market crash. It created lower prices. These were the first sings of the coming Depression. Dow Jones Industrial average collapsed, creating another cause of the stock market crash. The rebound took 26 years. It was causing people to throw themselves out of buildings because of how intense the bankruptcies were. Banks were closing for their own sake. The depression began in full swing as these things started to occur.
Video
Picture
Political Cartoon
Quote
"Definite signs that business and industry have turned the corner from the temporary period of emergency that followed deflation of the speculative market were seen today by President Hoover. The President said that reports to the Cabinet showed the tide of employment had changed in the right direction." News dispatch from Washington
Subjunctive Question
If people were able to pay back the banks for their loans, would the banks have gone bankrupt? Or would the overall Great Depression drought them also?