The Great Depression did not just happen in America, it was born. In the 1930s a sequence of key events and problems led to the determine of Americas economy. These included speculation, depressed farms and industries, wealth distribution, low money supply, no safeguards, overproduction, unemployment, and decline in foreign trade.
Speculation was a way of romp with short term investments. Speculators bought low transmits, which they thought, would rise in price, and when they change them they would receive a profit. This was like gambling on the stock market, which seemed to attract thousands of Americans. The stock market boom was very unsteady, because it was ground on borrowed money and false optimism. When investors lost confidence, the stock market collapsed, taking them along with it. Depressed farms and industries caused wages to drop and constrained employers to lay withdraw their workers. With their low incomes, m some(prenominal) farmers and workers could not fall in the manufactured goods that the industries have been producing at a fast rate. This underconsumption became a major disadvantage in the economy. Wealth distribution referred to the bulky gap between rich and poor. The top 5% received 30% of the wealth, which was social inequity. Even though business earnings rose in many industries, workers did not receive a fair and equal share of these profits.
This forced goods and products to pile up in warehouses across the nation because there were not decent buying consumers due to the fact that they did not have any money. Overproduction was advanced by the use of the assembly line, which increase the efficiency rate and took less time to make the alike(p) product. There was too much supply and not generous demand. After the assembly line invention, many companies started laying off workers because of the efficiency rate dramatically increased...
You described the history back end the depression very well. I like your transitions and your defence of your thesis.
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