1. Causes Of The Great Depression

2. LOW INTEREST RATES
THE FEDERAL RESERVE KEPT INTEREST RATES LOW FOR OVER A DECADE, BASED ON THE REPUBLICAN ECONOMIC PRINCIPLES (SUPPLY SIDE ECONOMICS) OF THOSE IN POWER
THIS LED TO COMPANIES BORROWING MONEY AND EXPANDIND MORE THAN NECESSARY

3. Installment Plan
For much of the 1920’s Americans were purchasing high prices items (cars, refrigerators) on Installment Plans.
Purchasers could make small down payments and pay the remainder of the item’s price in monthly installments.

4. Overproduction Companies made more goods than could be sold
Farmers grew more product/crops than what was needed
Many farmers had gone into debt to buy land or equipment during WW1

5. Falling Demands
With too many goods unsold, production was cut back and employee laid off
Unemployment began to steadily rise

6. The Stock Market Crashes
Stock Market was propelled throughout much of the 1920’s because individuals bought on credit
By the Summer of 1929investors began to sell their stocks in droves, and the massive sell- offs made prices drop
Black Thursday October 29th 1929

7. The Stock Market Crash

8. Banks Close
Farmers and Factory Workers (all people) couldn't pay back their loans to the banks because their products decreased significantly in value
Loans go into default and banks begin to close because they have no money
Thus, people lose their life savings

9. Banks Close
watch?v=iPkJH6BT7dM

10. = + Banks Close Banks have no money to give people
People Default on Loans
People Loose savings

11. 1920’s Problems BANKS Have NO $$ PEOPLE LOST SAVINGS & JOBS
Factories making Too Much, Farms growing too much
BANKS Have NO $$
PEOPLE LOST SAVINGS & JOBS
NO ONE TO HELP!
Factories Fire Workers (Don’t need them)
Farm Prices fall (Farmers can’t make $$)
Banks Close because they have no money: Loans have not been paid back, can’t give people their savings
Farmers & Factory Workers can’t pay back loans to Banks: DEFAULT!!