Great Depression Causes:
Black Tuesday
USA 1920's Extra points
- Over production
- Stock market (buying on margin)
- Tariffs and this lowered trade (tax on international trade)
- International debt
- Weak European economy
Black Tuesday
- Dow Jones industrial average collapsed
- Continued selloff took place until 1932 when the DJIA was 89% of its 1932 peak
- People throw themselves out their buildings
- Businesses go bankrupt
- Banks close
- Depression begins
USA 1920's Extra points
- High tariffs- success for US business, part of isolationism
- Laissez-faire capitalism- private ownership with little infringements from the government (Hoover's idea of Free Enterprise)
- Overproduction of a major cause for both agriculture recession and stock market crash
- Government restrictions on immigration, particularly Asians during this period
Video |
SummaryStock market crash cause by overproduction of goods and high tariffs by the people. Also created by buying on margin as people could not pay back the banks their loans. Black Tuesday was when the crash happen and Dow Jones industrial collapsed and businesses went bankrupt.
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Political Cartoon
Questions?
If people were able to pay back the banks for their loans, would the banks have gone bankrupt? Or would the overall Great Depression drought them also?