Great Depression

1. The crash of 1929

1.1. Black Tuesday caused many investors to panic which lead to dumping 16 million shares

1.2. Buying on margin affected people's credit

2. Consumer goods and credit

2.1. More goods in the market than people can afford to buy

2.2. People took too many loans out that they could not pay back.

3. Buying on the margin

3.1. Meant people bought on credit

3.2. Individual could buy a share of a company and use the promise of that share to buy more

4. Overproduction in Factories

4.1. Too many things were produced that people couldn't buy.

4.2. Drove prices down making the farmers earn no profit

5. Overproduction on farms

5.1. Overproduced crops

5.2. Debt forced farmers to plant an increasing amount of crops

6. Income inequality

6.1. This meant that a small amount of people had a very good income

6.2. A very large amount of people were left with a very amount of money.

7. Bad banking

7.1. Did not help the economic situation

7.2. Bankers capitalized irresponsibly

8. Global Depression

8.1. Germany owed France and England a lot of war reparations

8.2. France and England owed the US millions of dollars