Causes of the Great Depression

Useful Definitions

Prices dropped on goods which lead to overproduction.

Define Overproduction

The income disparity between the rich and the poor expanded.

Define Income Disparity

More people used credit and installment plans to pay for goods.

Define Installment Plan

New technology forced people out of their jobs.

The “Boom and Bust” cycle was due for a bust.

Define Boom-and-Bust

World War I allies could not repay their loans to us.

A major drought occurred in the middle of the United States.

…the Great Depression.

…wide spread poverty

…massive dust storms

…stock market crash

The results were……

Boom-and-Bust: characteristic of a period of economic prosperity followed by a depression.

Installment Plan: a system for paying for an item in fixed amounts at specified intervals.

Overproduction: production in excess of need or stipulated amount.

Income Disparity: the differences in the distribution of wealth and income within or between populations or individuals

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