Causes of the Great Depression

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Causes of the Great Depression

• Unequal Distribution of Wealth causes lack of
  purchasing power among bottom 50 households
• Oligopolies create artificially high prices
• Agricultural overproduction depresses commodity
  prices

• Unregulated banking industry
• International U.S. tariffs force European
  govts to countertariff and default on debt
  payments
• Poor Govt policy
• Buying Stocks on Margin

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Unemployed Marchers
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Numbers of Banks and Bank Suspensions Numbers of Banks and Bank Suspensions Numbers of Banks and Bank Suspensions
Year Number as of 12-31 Suspensions
1929 24,633 659
1930 22,773 1350
1931 19,970 2293
1932 18,397 1453
1933 15,015 4000
1934 16,096 57
Data are from Table V 20-30 in Historical Statistics of The United States Colonial Times to 1970, 1975, p. 912. Data are from Table V 20-30 in Historical Statistics of The United States Colonial Times to 1970, 1975, p. 912. Data are from Table V 20-30 in Historical Statistics of The United States Colonial Times to 1970, 1975, p. 912.
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Run on a Bank
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