Causes of the Great Depression – Matthew Noonan

Unemployed_men_queued_outside_a_depression_soup_kitchen_opened_in_Chicago_by_Al_Capone,_02-1931_-_NARA_-_541927American_union_bank

 

The Great Depression was first caused when Farms and Industries were depressed.  New machines increased production which made many farmers would loose their jobs.  Farmers then had to move and find a new job.  Many industries were reduced because technology kept increasing so machines were used often.  Machines would do jobs more efficiently so many jobs would be loss because the machine would do the job better and companies will make more money.  These companies make more money because they will have to now pay a lower amount of workers.

The class system was made to where the rich would dominate the poor.  The poor people would look up to the wealthy   The wealthy had most of the power during the Great Depression.  Jobs started to become lots because of mechanical machines.  Machines would do the jobs more efficiently than the regular labor given by workers.

Banking industries weakened before the Depression.  The crash caused banks to lose deposits, which will increase in defaults on loans.  Unemployment was also a big factor.  Many citizens all over the country were unemployed.

Policies were major problems in the cause of the Great Depression.  Taxes were cut on businesses and the wealthy.  Factories expanded with machines.  People lost jobs because the machines did the work better.  The U.S.’s money was so small so the economy couldn’t bounce back from cash.

The last cause for the Great Depression was for the decline in foreign trade.  Stocks made bank loans dry up.  Banks couldn’t give out money since the stocks would practically take all the money from that.  International trade began to decline because America had lost money.  The high tariffs blocked International trade because of less American money.  High tariffs were then used to protect domestic businesses and industry.