reasons for the great depression

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  • Created by: hbousher
  • Created on: 07-01-21 14:07
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  • reasons why there was a depression after WW1
    • farming
      • urged to produce more wheat and given subsidies to do so
      • some farmers took out loans to buy farmland and machinery
      • mechanisation meant that some workers werent needed and many workers became unemployed
      • during the war demand for wheat wasa high, after the war farmers produced too much wheat;prices fell
      • some farmers produced more wheat so that they could pay off their loans
      • many farmers were fired or went bankrupt and so unemployment went up
    • industry
      • many striked in 1919 and 1920
      • strikes failed to get better working conditions and sometimes made businesses shut down
      • many older industries were in decline
    • government reaction
      • laissez-faire
      • government did not try to stop the depression
      • isolationist tariffs but on other countries led to import tax on american goods and us exports fell
      • tariffs pushed americans to buy more US goods
      • the government soon felt that the depression would right itself

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