Outline Thesis – There were many causes to the great depression

Outline Thesis – There were many causes to the great depression

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Brian Halter Outline Thesis – There were many causes to the great depression. Topic sentence – Over production was one of the major causes of the great depression. Section – 1 How overproduction affected major corporations… Because of overproduction in united states businesses,companies made way more products than the companies could actually sell so businesses were not making much money. (American Odyssey pg. 421 – 422) This led to cutting wages or even employees getting fired. No income for public made for people to have les cash and therefore not buy as much. Business’s not making even more money now. Product prices are very low because of this This leads to a bad market (stocks go down) How did this affect banks… Being everyone bought on margin at the time, or in other words borrowing money from the bank in order to buy stock, when stocks prices dropped rapidly nobody had money any money left to repay the bank money that they had borrowed on margin. Because of this, people are left on streets homeless and jobless. Banks all over the US lose money. In addition, being there was a HUGE population boom in US, many banks had to make loans out to many people for houses and such. (American Odyssey pg. 420) When the stocks start to go down and people couldn’t repay their margins that were now being called in, the bank tried to get the money from the house loans they made. People didn’t’ have the money for houses in time so the bank took their houses. More people are on the streets now… Bank has too many house loans out and margins out. This leads to failing of the US bank. When people who thought they safely tucked away their cash in the bank wanted to take it out, they couldn’t because the banks didn’t have the cash to do so. (Great Depression pg. 25) Because of this people lose their cash and their confidence in banks = bad for economy.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern