Causes of the Great Depression

"Everybody ought to be rich"

Everything would be too expensive, people would invest in risky things.

Uneven Prosperity

Rich people got richer and dominated the industry, leaving poor behind

Personal Debt

Credit made expensive stuff more reasonable, but people couldn't pay it back

Too many goods, little demand

Warehouses were overstocked, people couldn't afford the speed stuff was produced.

Trouble for farmers

Failing prices led farmers to poverty and they were unable to pay back debt.

Buying on margin

People would purchase something cheaply, and borrow the rest, high interest rates occurred.

Speculation

High risk investments in hopes for a big payout.

Durable Goods

Goods like fridge's, cars, and dishwashers. They were overproduced because they didn't need replaced often.