Causes Of The Great Depression Essay -- essays research papers

Causes of the coarse DepressionMany people hazard that the Great Depression was caused solely by the stock market crash. Anybody who tells you this in all probability didnt pass U.S. History in high school. The fact is, the Great Depression was caused many different factors. Four of which were overproduction, uneven distribution of wealth, preservative tariffs, and the four sick industries of the 1920s.After World War I, new proficient improvements helped factories to produce high quantities of goods using smaller amounts of employees. Fewer workers meant less bullion being redistributed to the consumers to purchase products. America didnt have a necessity for this higher quantity of goods with less people receiving paychecks. Thusly, the age-old scheme of supply and demand began to wither because there were likewise many products with too few people who could suffer them.In 1922, the average weekly earning for closely people was about 22 dollars. Because of this uneven d istribution of income, families couldnt afford to buy most products. Businesses suffered additionally because they had trouble selling goods. Most acquire that could have been put into employees salaries went to shareholders or back to the business itself. If the workers had higher wages, they would be able to purchase goods and thus help the economy.In 1930, telling passed the Hawley-Smoot Tariff Act, which created the highe...