Causes Of The Great Depression Essay -- essays research papers

Reasons for the Great Depression Numerous individuals believe that the Great Depression was caused exclusively by the financial exchange crash. Anyone who discloses to you this most likely didn’t pass U.S. History in secondary school. The truth of the matter is, the Great Depression was caused various components. Four of which were overproduction, lopsided dispersion of riches, defensive taxes, and the four â€Å"sick industries† of the 1920’s.      After World War I, new innovative enhancements helped production lines to deliver higher amounts of merchandise utilizing littler measures of representatives. Less specialists implied less cash being redistributed to the shoppers to buy items. America didn’t have a need for this higher amount of products with less individuals accepting checks. In this manner, the well established arrangement of gracefully and request started to shrink in light of the fact that there were such a large number of items with too hardly any individuals who could manage the cost of them.      In 1922, the normal week after week acquiring for a great many people was around 22 dollars. Due to this lopsided circulation of salary, families couldn’t bear to purchase most items. Organizations endured also on the grounds that they experienced difficulty selling merchandise. Most benefits that could have been placed into employee’s pay rates went to investors or back to the business itself. On the off chance that the laborers had higher wages, they would have the option to buy products and in this way help the economy.      In 1930, congress passed the Hawley-Smoot Tariff Act, which made the highe...