1. Causes of the Great Depression

2. Economic growth declined during the late 1920s. Why?
Overproduction-
Farms and factories made too much
Weak Banking-
Made unsure and unwise loans

3. Stock purchases were made on credit. How it affected people:

4. Buying on Margin
People paid ten percent of a stock purchase and agreed to pay the rest later. Many times the people did not have the money to do so

5. Corporations and individuals became overextended. How?
They owed more money then they had

6. The stock market crash led to a cycle of low demand and high unemployment.
Disasters triggered other disasters
Ex) Businesses could not expand or turn to banks

7. The agricultural economy in the United States was in poor shape
The agricultural economy in the United States was in poor shape. Reason:

8. Reason: The first to feel the economic effects of the Depression
Wages did not keep up with the price of goods