nov 16, 1928 - Causes of the Great Depression

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1. Overproduction by both farms and factories. The ability to produce goods was greater than the ability to sell them.

2. Unequal income distribution: most of the profit was going to the rich; worker wages were too low. The rich would invest in creating more agencies of production, but there few consumers for them (because wages were too low).

3. High tariffs eliminated foreign products/markets.

4. Installment buying and easy credit was available to consumers and this encouraged debt.

5. New machines increased unemployment.

6. Buying on margin: you would pay some upfront then loan the rest from the bank. Helped lead to debt when the stock values decreased.

7. Bank failures (see Black Tuesday) and the stock market crash.

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