The Great Depression

Many things can be attributed to the cause of the Great Depression. The stock market crash can be seen as a starting point but not the only cause of the depression.With people spending money as often as they could, and not even having any to begin with they ended up buying new cars or radios on installments up until the point that they were unavailable to buy any more merchandise. This continued with the belief that everyone was able to be rich, and this lead to more careless spending.An uneven money distribution was also accredited to the great depression, and with money going to just the rich rather than being giving equally, the middle class began to suffer greatly and with that they started down the road to utter poverty.One last cause that further developed the great depression was the new tariff acts established; this was more seen as a cause rather than a solution.
In the mist of a prosperous period in American history, citizens were wasting their money on things they wanted but did not really need."The great wealth…has had the widest distribution among our own people…has gone steady stream…into the region of luxury." (Doc. B)Being as optimistic as Hoover was, Americans were reassured of their economic status and began to "shop" more than usual. Americans continued to buy one more car or radio, and when people had bought all they could afford they stopped buying.Demand for supplies fell causing manufacturing companies to drop its prices. As a result of this change in the economy, cotton prices, wheat prices, etc, fell dramatically leaving farmers with major money problems.Americans had been in an expansion peak with high qualities of supply and demand, but as Americans stopped buying the country went into a contraction, which led to a trough.Farmers and companies still had the high number of supplies, but with less Americans to buy them they were forced to


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