1. Causes of the Great Depression

2. Industries/Overproduction
Factories were producing too much
Supply was higher than demand
Prices drop
Cut hours, wages, and job
Businesses close

4. Banking/Credit Banks were loaning out lots of money
Using loans to buy goods
Lose job and can’t pay back loans
Banks lose money and shut down

6. Raise Tariffs – tax on imported goods Makes US goods cheaper
World Trade
Raise Tariffs – tax on imported goods
Makes US goods cheaper
Encouraging buying
Other countries no longer trade

7. Stock Market Everyone is playing to “get rich quick” Buying on margin
Only actually buy part of stock and borrow rest
Stock prices drop so people can’t pay back their loan on the stock
Crashes Oct 1929
Everyone sells stocks and no one buys
“Start of Great Depression”