Causes of the Great Depression Outline

The Great Depression of 1929 was not due to one major particular cause, such as the Wall Street Crash, but to a number of causes, which were equally responsible for Great Depression of 1929.


I. Introduction
A. Tell why the Wall Street Crash was equally as responsible as the other causes for the Great Depression of 1929 and how all the causes affected each other in a cycle. Other Causes...
1. Crisis in Farm Sector
2. Overproduction by American Industries
3. Unequal Distribution of Income

II. Crisis in Farm Sector
A. prices and international demand for crops rose causing farmers to take out more loans
1. for land and equipment and plant more crops
B. once the war was over the prices and demands dropped
1. farmers thought the solution to this was to increase production

III. Overproduction
A. industries in high demand during wartime, were no longer needed as greatly
1. farmers thought the solution to this was to increase production but didn't work
B. consumers bought fewer goods and services
C. farmers couldn't pay off their loans
1. forced to foreclose their farms and give them to banks as payment for the debt

IV. Unequal Distribution of Income
A. production had expanded much faster than wages
1. rich got richer and the poor got poorer
2. most Americans could not fully participate in economic advances
B. many people could not purchase the great amount of goods that the factories produced

V. Wall Street Crash
A. Banks fail
1. Farmers can't pay back their debt and must default
2. Consumers paid with credit which easily allowed debt to build up over time

VI. Conclusion