The Great DepressionBlack Tuesday –October 29, 1929Causes of the Great Depression-Lack of diversification– so much of our productions are cars, refrideraters ect.Too much being produced. Chevy destroys used cars. 1927 model t ends. Henryford cuts jobs because he stops producing.-Consumer debt double in 1920-1930 because people buy cars on credit.-Weak middle class-Reckless investments/loans-European financial problems-The Dawes Plan (1924)- dawes steps in to loan germany 200 million sothey can pay england and france to then pay us.-Trade decline
The Great Depression (cont’d)Results of the Great Depression-Banks failed- 9000 went bankrupt or closed to avoid bankruptcy. EffectsEurope.-Gross National Product & Gross Domestic Product Decline-Unemployment- around 20% for entire decade-Underemployment- 1/3 of remaining workers were underemployed.-Agriculture failures- 1/3 of all farm shut down.-Migrant farmers-The move to California.