Causes of the Great Depression

Question 1

What were the causes of the Great Depression?

Answer 1

Industry, farming, stock, credit, trade, and banks

Question 2

Industry

Answer 2

Overproduction

• lay offs
• low prices-no profit
• slowing economy

Question 3

Farming

Answer 3

Overproduction

• prices fall due to new technology- no profit
• farmers lose farms

Question 4

Stock Market

Answer 4

• BUYING!!!
• on margin
• inflated prices
• Oct. 29 Crash-Black Tuesday
• layoffs/overpriced stock
• stocks fall

Question 5

Banks

Answer 5

• ran out of money
• panicked investors tried to withdraw money all at once
• banks closed

Question 6

Trade

Answer 6

• Europeans borrowed from US banks

- US buying less- Europe can’t pay back loans

Question 7

Credit

Answer 7

• people over-borrowed/ bought what they could not afford
• loss of jobs caused lots of possessions (homes/cars) to be reposessed