Zusammenfassung der Ressource
Causes of the Great Depression
- Post WWI Economic Boom
- Business production grew
faster than demand
- Families took out loans to buy
cars and home appliances
- Overspeculation and risky
investments in the stock market
- Market loses value on Oct. 24
- Nervous people flock to banks to withdraw money
- Banks could not come up with the
cash and fail
- Low consumer confidence in the economy
- Investors sell their shares
- The Stock Market Crash of 1929
- Consumers cut spending
to save money
- Sales fall
- Businesses cut production
- Workers are laid off
- Unemployment reduces demand
- Demand goes down further
- Businesses cut production further
- More unemployment
- Families cannot pay off debts
- The Great Depression