Causes Of The Great Depression
I. Causes of
the Great Depression
A.
*American Economy had
weakened during the 20's.
Difficulties
faced by Farmers also faced by Coal Miners, Railroad workers,
and Textile
Industries.
B.
*American Business
System was unbalanced.
Automobile and housing fueled the economic boom of the 20's.
Other
Industries such as chemicals were underdeveloped.
When
the Automobile and Housing Industry weakened, the other Industries
could
not take up the slack.
C.
*Poor distribution of purchasing power weakened the economy.
Farmers and other workers were not earning enough money to buy the
products they were making.
D.
*An enormous amount of debt threatened the Country's Economic health.
Large mortgages kept farmers from keeping up payments.
Banks defaulted on loans.
E.
*Debt problems with the International community deepened the domestic
credit crisis.
Tariffs placed on foreign competition