What Caused The Great Depression
The great depression brought hard years for all canadians. The great depression was a time of low income and high poverty all over the world. There are many complex reasons. For this devastating time. The main causes of this tragedy are business choices, the drought and peoples financial choices.
Choices businesses made affected the great depression deeply. Businesses made choices that made the great depression as severe as it was. They made choices that put themselves into much more debt than needed. By over producing and buying their equipment they uses in their factories on credit.
Firstly, businesses overproduced and over produced. Since the war had just previously been fought assembly lines had already been formed from when they were …show more content…
Once people started not buying and business started declining businesses started to not be able to pay their debts that they used to get the equipment to make the products. This resulted in many factories being closed or many workers getting laid off or even fired. Since workers were being laid off people started not making money causing more poverty to run the streets. If the whole factory got shut down than there was much less chances of even getting work. Business caused the main fall of unemployment which evidently lead to poverty, People living on the streets and families cracking and falling …show more content…
This lead to job loss and other business related issues. Also the first 3 months they could afford what they bought but what happens when suddenly the bills add up and you start owning 30,40,80 dollars? The bills and expenses really add up. Buying on credit also hit people hard once the great depression started, although this wasn’t a cause it made the situation much more severe. When the banks started coming to take back things you hadn't payed for in they took a lot, since you only partially owned most of the stuff in your possession. Therefore once the depression hit and you had no way of paying off debt you didn’t even own anything
Choices businesses made affected the great depression deeply. Businesses made choices that made the great depression as severe as it was. They made choices that put themselves into much more debt than needed. By over producing and buying their equipment they uses in their factories on credit.
Firstly, businesses overproduced and over produced. Since the war had just previously been fought assembly lines had already been formed from when they were …show more content…
Once people started not buying and business started declining businesses started to not be able to pay their debts that they used to get the equipment to make the products. This resulted in many factories being closed or many workers getting laid off or even fired. Since workers were being laid off people started not making money causing more poverty to run the streets. If the whole factory got shut down than there was much less chances of even getting work. Business caused the main fall of unemployment which evidently lead to poverty, People living on the streets and families cracking and falling …show more content…
This lead to job loss and other business related issues. Also the first 3 months they could afford what they bought but what happens when suddenly the bills add up and you start owning 30,40,80 dollars? The bills and expenses really add up. Buying on credit also hit people hard once the great depression started, although this wasn’t a cause it made the situation much more severe. When the banks started coming to take back things you hadn't payed for in they took a lot, since you only partially owned most of the stuff in your possession. Therefore once the depression hit and you had no way of paying off debt you didn’t even own anything