History Task 4.docx Survey of United States History Task 4 Western Governors Universit

Document Content and Description Below

History Task 4.docx Survey of United States History Task 4 Western Governors University A. The Great Depression was caused by several things not just the stock market crash. A reduction in inte... rnational trade at the end of the World War, banking practices during and after the war, as well as war debts contributed to the Great Depression. After the end of World War I the economy began to decline as war goods were no longer needed. The need for workers on these war goods was gone, trade of these goods vanished and with-it international trade. Then soldiers returning from the War flooded the workforce. By 1912 unemployment passed 12 percent. The development of electric energy allowed for some economic recovery, and economic expansion. However, by 1928 domestic demands for new housing, automobiles, and electric appliances stagnated. Factory owners had to reduce production and then had to cut workers. With unemployment growing and falling wages families could no longer afford to buy goods. Meanwhile with the reduced amount of consumer spending businesses began to struggle and were forced to put themselves into debt. Due to the inability to repay loans businesses misrepresented their assets which was overlooked by lenders. (Norton, 15) During and after the World War American banks loaned billions of dollars to European nations, including Germany. Loans were given to Germany in order to prevent economic troubles in Germany. However, between 1928 and 1929 the amount of lending from Americans redu. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . . [Show More]

Last updated: 1 year ago

Preview 1 out of 8 pages