Causes Of The Great Depression Dbq

From 1929 to 1939, the world experienced a global economic crisis known as the Great Depression. It was the twentieth century's lengthiest, most intense, and most widespread depression, and its effects were felt across the world. While there is controversy over what started it, the stock market crash, the banking crisis, and overproduction all contributed to the Great Depression.

The stock market was growing in the 1920s, and many people regarded it as a rapid way to get rich. Investors poured money into equities, convinced that the market would climb endlessly, “...most of America waited for supply to create its own demand, waited for the business cycle to run its natural course, waited for the stock market to get back on its upward course”

The United States saw an extraordinary industrial boom in the years leading up to the Great Depression, with new technology and manufacturing processes allowing things to be produced at a quicker and cheaper pace than ever before. This resulted in a surge in consumer spending as consumers bought automobiles, refrigerators, and other items they could never afford previously, “...when people have bought all they can afford they go on buying…” (Doc 10). Unfortunately, the tremendous speed of production eventually outpaced customers' capacity to purchase all of the things being created. This resulted in an excess of items on the market, which resulted in lower pricing and lower earnings for enterprises. Businesses were compelled to lay off workers as they struggled to sell their assets, thus reducing consumer demand and creating a downward circle of economic collapse. Overproduction was particularly felt in the agricultural sector when farmers produced record amounts of products yet had no one to sell them to. Prices for agricultural items decreased precipitously, leaving many farmers unable to turn a profit. Many cartoons were created and released to the public displaying this struggle against the drop in crop prices, its ties to overproduction, and how negatively it affected the farming community (Doc 11). Farmers were unable to repay the debts they had taken out to support their businesses, resulting in widespread foreclosures and bankruptcies. The fact that many Americans were already deeply in debt exacerbated the overproduction of