Great Depression Causes

People were buying high-risk stock with borrowed money, when the value of stocks fell, people lost their money

• speculation

• tariffs

• overproduction

• laissez-faire

Factories produced more than they could sell, causing supply to greatly exceed demand, in turn, causing companies to lay-off workers.

• overproduction

• mercantilism

• barter

• speculation

True/False: Because they had made many bad loans and extended too much credit to customers, many banks failed and were forced to close .

• true

• false

Tax on imports; can lead to a slowing of the economy because trade is restricted .

• tariffs

• exports

• laissez-faire

• speculation

Buy now!, pay later! (can lead to debt if abused!) Many Americans still abuse this today!

• credit

• debit

• barter

• money

October 29, 1929- the day the stock market “crashed” and the value of stock fell.

• Black Tuesday

• Black Friday

• Fat Tuesday

• Ash Wewdnesday

Translated as “leave it alone” or “hands off!”- belief that the U.S. government should NOT try to help “fix” a troubled economy; it would work itself out.

• laissez-faire

• mercantilism

• speculation

• merci

Individuals and businesses were borrowing more money than they could repay; a.k.a. when you owe money.

• debt

• mortgage

• bank

• stocks

Because money was scarce, many people resorted to trading items & services in exchange for the things they needed; this is known as _______?

• barter

• mercantilism

• tariff

• speculation

One of the main causes of the depression- because people did not have the money to buy things, many companies were forced to lay-off their workers, which led to a high unemployment rate

• reduction in purchasing

• decline of interest rates

• development of free trade

• increase in banking loans