what caused the 1930s depression
- Created by: BKW
- Created on: 04-05-17 12:51
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- what caused the great depression 1931?
- Wall st crash 1929
- collapse in share prices
- value of stocks fell to $26m
- rush to sell, repay bank loans and take out savings
- over production / under consumption
- mass production = prices fall = wages fall
- mechanisation took 2 million jobs a year
- trade unions weakened less fair wages
- dependant on high levels of consumerism
- produced more than people could buy
- hit farmers
- wheat prices lass than 1/2 in 1929 than they were in 1920
- hit farmers
- by 1929 those who could buy had already bought
- 23m ford T on road by 1929
- produced more than people could buy
- value of farm land fell by 30% 1920-29
- weak banking
- 30,000 small state based banks
- no checks
- banks offered loans easy terms
- encouraged borrowing
- banks had to declare bankruptcy
- 5,500 closed by 1933
- Republican policies
- Mcumber tarrif acts raised tarrifs by 40%
- Limited control over big businesses
- price fixing
- monopolising industry
- tax policies
- poorest 40% only received 12.5% of nations wealth
- top 5% received 33%
- poorest 40% only received 12.5% of nations wealth
- failed to react
- international economic prblems
- Europe unable to pay war loans
- tarrifs mean europe could not trade to make money to repay loans
- German dawes plan more debt
- Wall st crash 1929
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