Introduction

Question 1

Background Knowledge (1)

• Throughout the 1920s…
• The stock market…
• It was a place…

Answer 1

Throughout the 1920s, the US’ economy expanded rapidly, and the nations’ total wealth had doubled from 1920-1929, in a time known as the “roaring twenties”. The stock market was centered on Wall Street in New York City, where anyone from millionaires to janitors could invest their savings in the stock market. It was a place where Americans recklessly invested their money into shares, not taking into consideration what would happen if the stock market was to collapse.

Question 2

Background Knowledge (2)

• The stock market reached…
• Not to mention, wages…

Answer 2

The stock market reached its peak in 1929, but by then production had already declined and unemployment had risen. Not to mention, wages were low, consumer debt was proliferation and banks had an excess of large loans that could not be liquidated.

Question 3

Named Factor
-There are many causes…
(gov regulation/cheap creadit/debts/GD)

Answer 3

There are many causes for the Great Depression such as the highly competitive US banking system, minus government regulation, which encouraged cheap credit causing many Americans to run up affordable debts, which it wasn’t able to cope with was the most important cause of the Great Depression.

Question 4

Other Factors

-However, other factors….

Answer 4

However, other factors also played a part such as the overproduction of goods and under-consumption, republican government policies of the 1920s, international economic problems and the Wall Street crash.

Question 5

Line of Argument

-This essay will argue…

Answer 5

This essay will argue that the weakness of the US banking system was the most important cause for the Great Depression.