Depression of USA

1)  Economy: Economy has a positive and negative part, the most important is the positive because you can buy what you want and do many things with money but in USA the money was wasted in many things so the industries produced more and more in a moment they had overproduction.  Another thing is that the products the people bought were paid with credit and the credit only works if the uncertainty economy increase.

-) The Farmers: Farmers suffered a lot in the years the industries were invented, the machines and all that because more products were made with that so they won’t sell them. Other was that in the WW1 the farmers did bigger his farms and when the war finished, they had overproduction. The positive things is that they could produce their own food so that wasn’t a problem for them.

-) Banks : The banks loan a lot of money so when the people saw that they were going to get poor, they told the bank to give their money back and the banks didn’t have the money so they went bankrupt. The positive was that some USA people did good things with that money.

2) The banking Crisis contributes because the banks didn’t have the money of the people so the people was becoming poor .

-) The deflation destroyed the economy related to bank failure

3) The deflation contributes because the employers could’t borrow money to paid the workers so they closed and left the workers on the street.

5) The WW1 contributes because the farmers lost a lot of money becuase the government told them to do bigger his farms to give soldiers food but when the WW1 finished they had overproduction and many people was poor then.

-) The «Frozen Credit» in USA damaged the economy  in France, Britain and Germany because Germany had to pay reparations to France and Britain and he borrow money from USA but as the United States had economy problems the economy of France, Britain and Germany became very poor.

6) The tariffs contributes because as the USA people was poor the other countries wasn’t so interested in selling products in USA so the United States’s economy was very poor.

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