Causes

Causes
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  • Overproduction 
  • keep making more product!!
  • consumers can't buy all this product...
  • Farming Crisis
  • Economic Gap between the Rich and the Poor 
  • Factories were producing an excessive amount of product. Their production rate was so fast that consumers could not afford to buy the products. 
  • Stock Market Crisis
  • During WW1, farmers had to produce a lot of crops to provide food to the troops. After the war, their prices dropped excessively low as they had too much food which lead to bankruptcy. 
  • Drought Condition
  • The drought ruined all my crops! Now I have no income.
  • The economic discrepancy between wealthy factory owners and labor workers was a big factor for the Great Depression. It unbalanced the economy there making it unstable. 
  • Bank Failures
  • We want our money NOW!
  • In October of 1929, Wall Street Crashed. Billions of dollars were lost, wiping out thousands of investors. In the aftermath of Black Tuesday, America and the rest of the industrialized world spiraled downward into the Great Depression (1929-39), the deepest and longest-lasting economic downturn in the
  • I'm losing all my money!!!
  • The drought worsened the farming conditions. It caused massive crop failures resulting in farmers being unable to pay their taxes. 
  • Due to the economic crisis, almost one thousand banks went out of business. As banks continued to fail, the general public out of fear began to withdraw their money. This further worsened the issue.
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