The Causes of the Great Depression
Buying on the Margin
*Investing with borrowed money
Over Production of Goods
*Agriculture
*Prices go down
American Protectionsim
*High Tarrifs
*Canada supplied 40% of worlds wheat 65% news print
*International markets tied
*as they went down so did exports
Unemployment
*Many factories and businesses closed because they couldn't sell anything
*Without jobs lots of people lost their houses lived in , "hooverville","shanty towns", "Bennett barnyard"
*Thousands existed soupy on 'Pogey' government payments
*start of welfare
*Received vouchers for food and soup kitchens set up
"Riding the Rods"
*men would lie under the trains on the thin rods and travel around
Drought on the Prairies
*Collapse of the wheat market left farmers particularly poor
*Cause mostly by the drought started in 1928 for 8 years which caused compound problems
*"Dust Bowl" From the top soil blowing around
*1935 Governement passed the Prairie Farm Rehabilitation Administration Act, to try and help the farmers
*Build irrigation
*Built reservoirs
*Takes 6 years for the government to try and help the farmers out
Summary
The Great Depression wasn't just started by one event. They events that lead up to them all contributed into almost a domino effect. The crash of the stock market really got things moving, with people losing everything they owned as well as there jobs new small mark shift communities. 'Riding the rods' was now more popular as well. The drought on the prairies along with overproduction of the wheat also lead to the great depression.
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