Depression Thesis and Points

The Wall Street Crash was one of many causes of the Great Depression. Tariffs and war debts, crisis int he farm sector, and the unequal distrribution of income were other causes. The Crash was the "last straw" combined with all the other causes.

1. Tariffs and war debt
a. U.S. lent money to Germany to pay back France and England so they could pay back the U.S.
i.Germans couldn't give the money to Frabce/England so U.S. lost money
b. Hawley Smoot tariff (protective Tariff: reduced foreign goods coming into U.S.)
i.other coutries couldn'y but American goods leading to industries hurting badly and unemployment rises and other countries retaliated raising their tariff.
2. Crisis in the farm sector
a. WWI had farmers getting loans for equipment and land but when the war ended there was no longer a demand, farmers are stuck with a debt leading to foreclosures
i. annual farm income 1919-21 $10 billion to $4 billion
3.Unequal Distribuation of income
a. rich become richer and poor become poorer
i.only rich can afforrd luxuries
i. Rich control a magority of income control in the nation
4. Stock Market Crash is final straw
a.businesses lose profit and investors lose millions leading to consumer spending drops and workers are cut
b.banks close leading to world payments