The Causes of the Great Depression - Simplified and Explained - (Summarized)

[@davidalexoff1658]

My sister interviewed my grand parents, who were in their late teens and early 20s during the depression on dvd. The things they remembered was. One Christmas, my grandma got dolls made from clothes pins.

[@paulbrower5867]

In fact, much of the Great Depression was growth OUT of the depression. By the late 1930's, people had more cars, appliances, radios (then big-ticket items), furniture, and clothes than they had in the late 1920's, suggesting that economic inequality was much of the problem. Banks were deputized to be the cautionaries in the American economy -- the ones who demanded to see bank statements, put up more collateral, and have a solid business plan. "Get rich quick", the ethos of the 1920's had become void. Borrowers had to make the bank solid, too. Education expanded in the 1930's, with high school (and greater productivity) becoming the norm. Strong unions ensured a link between worker productivity and workers' consumption (and bank balances). Farmers got subsidies for rotating crops, including the "unproductive" clover that put nitrogen back in the soil. Government created work and income. In the 1920's, consumerism was garish, but limited. The only roar in Rural America was the howling wind. Prosperity was only for a few well-connected people It is always tempting for economic elites to separate production from productivity, but when that happens, people go broke while others cannot buy what is offered after production. Speculation all but vanished in the 1930's. The financial system must work to create trust. Banks accept low yields with more controls. "You borrow here, so you deposit here and your payroll comes from here" is a solid practice. It took about eighty years to forget those lessons -- and then came 2008, following oodles of get-rich-quick" schemes that went belly-up at roughly the same time. .

[@CarlGerhardt1]

Yes, the idea that there was over-production of consumer goods by the late 1920's doesn't take into account that most of the South and large areas of the rural midwest were still without these things.

[@scuddyleblanc8637]

The stock markets crashed because they were not properly regulated. As governor of New Year, FDR was responsible for the regulation of the NY stock exchange, the largest by far. Unemployment never rose to 10% after the crash until after the government intervened. In fact, unemployment was trending downward before the government intervened. There may not have been a depression had the government stayed out of it, like Harding did with the depression of 1920-21.

[@Brent-z2s]

Horse meat was banned on the 1890s and many people starved in the depression because of this and it hurt the farmers.

[@CarlGerhardt1]

The actual original cause of the Great Depression was the massive, unpayable war debts and loans from WWI, and then the (probably), unpayable reparations payments imposed on Germany. (And then, American banks loaning huge sums of money to Germany to try and keep the merry-go-round going.)

[@Franklin-hh6uv]

Most of this presentation mirrors what is happening today. We are headed for the Republican Great Depression 2.0, and no one will be able to stop it.

[@ScratchGolf2430]

Banks have always been a major problem and have always created economic collapse banking is a buisness which wants more of your money so they can invest and gamble with your money

[@THEAZPro-f9z]

Borrow and spend Republicans, and then the bills came due. Just like in 2008.