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Causes of Depression
These terms are about the causes of the Great Depression
Question | Answer |
---|---|
Uneven distribution of wealth | Wealthiest 5% had 1/3 of all income. Bottom 40 % had 1/10 of all income. |
Unbalanced foreign trade | U.S. goods not wanted or too expensive globally by other countries. |
Easy credit | Consumers agreed to buy now and pay later. |
Unregulated Business practices | Price supports, buying on margin, over production of goods. |
War Debt | France, Great Britain, and Germany owed billions and had trouble or could not pay. |
Hawley-Smoot Tariff | U.S. products guarded with this protective tariff effectively cutting off all flow of goods into U.S. |
Crisis with farmers | High debt combined with producing more than they could sell. |
High unemployment | Got as high as 1 out of 3 and 13 million people. |
Bank Failures | Got as high as 1 out of 4 or 6000 total. |