The great depression was caused by many factors one was speculating (installment payments. people were buying and buying until they had no more money, production slowed down when people weren’t able to buy any more. Then people started buying on installment payments, not knowing that they would end up paying more than if they just bought it normally (doc 5).they didn’t have enough money to finish paying their debt. “With debt no longer regarded as shameful people started buying on installment (doc6)”.everyone bought things on installment with a rate faster than their income was coming , this eventually lead to production cuts that lead to layoffs then less people have money to buy things .
A second factor that caused the great depression was unequal money distribution. (Doc 7&8) shows how the normal family was under the poverty line and couldn’t even afford a simple styled boat because they were barely able to support themselves to live. In 1929 60% of the population was under the poverty line making under 2,000 dollars annually (Doc 9).since most of the nation was poor they were unable to buy products, and the rich need products to a certain extent. Since the demand goes down the production goes down and then people get laid off continuing the vicious cycle causing the great depression.
Overproduction contributed to the great depression. There was a surplus since people stopped buying products , production and prices went down and then workers were laid off (Doc 10).(Doc 11) shows the farm industry kicking out workers due to over production of wheat and cotton causing the prices to crash. Thanks to that everyone is losing their jobs continuing the cycle and starting the depression.
The depression was caused by overproduction, unequal money distribution and speculation. All those 3 factors lead to people losing their jobs and not having money to buy things which is a cycle that created the great depression.
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