Great Depression/ Stock Market Crash

20th Century

Speculation

buying stocks your think will rise and if they do you sell them for a profit

Buying on Margin

paying only a fraction of the stocks value

Stock broker pays for rest of it

What are the 4 main causes of the GD

1) Depressed Farms & Industries

2) Unequal Wealth Distribution

3) Restrictive Monetary Policy

4) Decline in Foreign Trade

1) depressed farms and industries

falling incomes, railroad jobs slow down, construction decreases, wages are lowered

2) Unequal Wealth Distribution 

gap btwn rich and middle class, people buying less due to wages and in debt

3) Restrictive Monetary Policy

reserve system= regulating $$ in circulation, Restrictive policy, not enough money to circulate

4) Decline in Foreign Trade

us served as a bank for the nation, bank funds dried up, less international trade, high tariffs