In history, there have been many times where the United States was in prosperity. The economy flourishes, and many people have the time of their lives. Peaks in the economy mainly happened after wars, but they can do so occasionally just because the times were going well. The Bull market boom was a point that happened before the Great Depression (Document 1). The Bull market boom caused the 1920’s to be called the Roaring 20’s. Everything was going great. People were able to use credit to purchase everything, and it did not look atrocious if a person had a great deal of debt. They could buy whatever they wanted, which led them to live the 20’s lifestyle. This time of prosperity was short lived. In less than 10 years after it flourished, the
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People were still over producing products after World War I. The demand for products had decreased, but the amount of surplus still lingered. This caused for many businesses and farmers to lose money. In the political cartoon, it shows a man, who represented the farm industry, trip over a sack, which represented overproduction. The farmer dropped the eggs he was holding, which represented the falling prices (Document 11). This farmer represented the farm industry, the United States, and its surplus of goods and materials. The overproduction he had tripped over was enough for prices to fall. When there is an overproduction of goods, prices need to fall in order to get rid of the extras. This caused the Great Depression since the cost of everything was down, businesses could not make money. Farmers started to go bankrupt since they had not made any money, and still had too many crops left. Furthermore, because businesses had overproduce, they had to lay off some workers. Notably, it was said in “If Hoover Fails,” by Elmer Davis, “Production slackened, workmen were laid off, until the… surplus was used up” (Document 10). This shows that overproduction was a cause of this depression since it was getting people fired. This added to the fact that the workers were now unemployed and then couldn’t pay off debt or help the economy. Unemployment rates were higher than ever, and that did not help the United States get back on their feet. The Great Depression was caused by overproduction, by people making too much and getting fired because of
People were still over producing products after World War I. The demand for products had decreased, but the amount of surplus still lingered. This caused for many businesses and farmers to lose money. In the political cartoon, it shows a man, who represented the farm industry, trip over a sack, which represented overproduction. The farmer dropped the eggs he was holding, which represented the falling prices (Document 11). This farmer represented the farm industry, the United States, and its surplus of goods and materials. The overproduction he had tripped over was enough for prices to fall. When there is an overproduction of goods, prices need to fall in order to get rid of the extras. This caused the Great Depression since the cost of everything was down, businesses could not make money. Farmers started to go bankrupt since they had not made any money, and still had too many crops left. Furthermore, because businesses had overproduce, they had to lay off some workers. Notably, it was said in “If Hoover Fails,” by Elmer Davis, “Production slackened, workmen were laid off, until the… surplus was used up” (Document 10). This shows that overproduction was a cause of this depression since it was getting people fired. This added to the fact that the workers were now unemployed and then couldn’t pay off debt or help the economy. Unemployment rates were higher than ever, and that did not help the United States get back on their feet. The Great Depression was caused by overproduction, by people making too much and getting fired because of