The Great Depression

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The Great Depression

Post  maddie on Mon Apr 29, 2013 10:58 pm

The brief period that had began in Europe of prosperity in 1924 abruptly ended when the economy collapsed. There where two factors that caused the great depression: economic, and financial.
Economic:
Prices of farm products dropped dramatically because of over production.
The increase in use of oil and hydroelectricity led to the slump in the coal industry.
Poor distribution of wealth was a major crisis at the time.
And finally the reliance on credit.
Financial:
Much of European prosperity in the 1920's was built on US bank loans to Germany.
US stock market boomed in the 1920's, stocks rose to unrealistic levels.
By 1928, American investors pulled money out of Germany to invest in the stocks.
By october 1929, the US stock market crashed, stock prices plunged.
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