The Great Depression

The real reason of the Great Depression is a huge number of factors, there was no solitary cause. More than a few reasons for the Great Depression were supply and demand, the banking system, earnings of personnel, achievement and failure of business, government policy, excessive conjecture in the stock market and the uneven sharing of affluence between the rich and the middle class. While there are many theories to what caused the Great Depression; all of these aspects played a position in the Great Depression.

The European nations manufacturing had been overwhelmed for the duration of the war and they relied on the United States for most commodities. The American industry amplified fabrication during the war to convene the order but excessive production after the war hurt the American industry and agriculture. The United States industry was making more than the people were buying. The American farmers were faced with the same basic evils of over production (McClain 35). Throughout the war in Europe the supervision fostered a gigantic increase in agricultural production. During the war the government subsidized many of the farmers. The farmers rented a lot during the war to expand their farms to convene the demand. After the war the farmers did not sluggish production and they over produced (McClain 36). The United States forced lofty tariffs on goods coming into the country bar wanted to vend their good without restraint in Europe (James 103). Congress passed the Fordney-McCumber tax of 1922 where they placed tariffs on certain agricultural products which were hardly ever imported in bulky amount to the United States. The excise should have slowed the agricultural production to assemble the domestic demands, but it simply hurt the nation’s farmers. The nation’s farm families represented 22 % of the American People in the 1920s.