Causes Of The Great Depression

1) The Coming of the Great Depression’s
A. The Great Crash
i. In February 1928 until October 1929 there was an economic boom, stock prices began to rise in addition there was easy credit offering. ii. October 29, 1929 “Black Tuesday” was a failure and was thought to have ben thee cause of the Great Depression.
B. The causes of the Great Depression
i. Historians have found this to be a remarkable period of time not due to its occurrence but to its durations and effect. ii. One factor of the Great Depression was a lack of diversity in the economy. Having the economic growth based on nothing more than construction and automobiles once they went ↓ so did the economy. Failed efforts of other industries too. iii. Second factor was a misdistribution of wealth as purchasing power and as a result there was no demand in goods leading to insufficient marketing for the goods. iv. Credit structure was another factor; farmers were indebt owing land mortgage and crop prices too low to ever help pay of the due. Small & large banks in trouble as in 1920’s customers defaulted on loans that suffered because of the market crash.
v. Fourth factor was international trade. European demand for good declined due to high American tariffs. European industry & agriculture = productive & difficulties economically. vi. Unstable international debt structure after WWI in 1918, all European nation allied with the U.S. owing the U.S. sums of money; sums too big for them to handle with awful economy.
C. Progress of the Depression
i. Banks collapsed after market crash and to avoid any more bankruptcy American banks closed ( 9,000 > ) nation’s money supply fell by more than 1/3 ii. Jobs were cut, lower wages and less workers due to Depression. People thought it co...

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...n calling on every business to adapt to new codes such as no company lowering prices or wages in search for any advantage. iii. The NRA was obviously weak because it was poorly written and administered; the section 7(A) promised workers the right to form unions but it wasn’t enforced so many corporations ignored it. iv. The NRA failed to do its job and soon was declared unconstitutional in 1935 by the S.C.
D. Regional Planning
i. AAA and NRA are examples of what planning was when trying to allow private interests dictate planning process, failure. ii. Tennessee Valley Authority was the unprecedented experiment in regional planning; this plan began to build dams in Tennessee and sell electricity. iii. TVA brought life back into the region by modifying transportation, stopping terrible floods, more industries and productivity.
E. Currency, Banks, and the Stock Market