Causes Of The Great Depression Essay -- essays research papers

Causes of the Great DepressionMany people think that the Great Depression was caused solely by the rail line market crash. Anybody who tells you this probably didnt pass U.S. History in high school. The fact is, the Great Depression was caused many different factors. Four of which were overproduction, uneven distribution of wealth, protective tariffs, and the four sick industries of the 1920s.After World War I, new technological improvements helped factories to produce higher quantities of goods using smaller amounts of employees. Fewer workers meant less silver being redistributed to the consumers to purchase products. America didnt have a necessity for this higher quantity of goods with less people receiving paychecks. Thusly, the age-old system of tag on and demand began to wither because there were too many products with too few people who could afford them.In 1922, the average weekly earning for most people was round 22 dollars. Because of this uneven distribution of incom e, families couldnt afford to buy most products. Businesses suffered additionally because they had trouble selling goods. Most profits that could have been put into employees salaries went to shareholders or back to the business itself. If the workers had higher wages, they would be able to purchase goods and thus help the economy.In 1930, congress passed the Hawley-Smoot Tariff Act, which created the highe...