Great Depression
Storyboard Text
- Overproduction- Farming
- I OVERPRODCUDED MY PRODUCTS!!!
- supplies
- Overproduction- Industry
- "WHAT ARE WE GOING TO DO?!?!"
- supplies
- supplies
- supplies
- Speculation
- The prices increasing and them decreasing
- American farmers were producing far more food than the population was consuming. During WWI, their mechanised their techniques, a process their output but also cost a lot of money, this put farmers into debt. Furthermore, land prices for many farmers dropped by as much as 40 percent, but as a result, the agricultural system began to fail throughout the 20s, leaving large sections of the population with little money and no work
- Shaky Banking
- "I'm sorry we don't have any money left over at all, we are trying the best we can!"
- The industrial production rose by 50 percent at the end of the 1920s, wages did not keep pace meaning the expendable income was not available to purchase what was being created.
- Buying on Margin
- Prices going up and down from the products increasing by 10%
- People were speculating about the value of stocks and rushing to buy more and become rich. When they were buying on Margin, 10% down from the buyer, the rest is financed from the bank. The results from that was the stock-market crashing.
- Restrictions on International Trade
- "Lets not pay any tariffs that are expensive because that is too much."
- The banks were making bad-investments and companies were going out of business. When the bank(s) didn't have the money, they people were panicking and telling them to give them the money. The cops were involved also because due to the huge crowd in front of the bank and the huge crowd inside of the bank also, that caused them to be involved with the bank. Like the people were also beating the cops, a huge break-out happened because of that situation.
- "TRY HARD!!" "I WANT MY MONEY NOW!!"
- Margin trading offers greater profit potential than traditional trading, but also greater risks. Purchasing stocks on margin amplifies the effects of losses. When they were buying on Margin, 10% down from the buyer, the rest is financed from the bank. The results from that was the stock-market crashing.
- Restrictions on international trade are meant to encourage American to buy American made goods. For tariffs, foreign countries did not want to pay the expensive tariff, so there is no international buyers for our overproduction. There are some major effects of the crash and economic depression which was :- Business and Bank failures- Fore Closures - High rate unemployment
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