causes of the great depression

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American History


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Jacquelyn D


Date added:

February 29, 2016








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2 / 472


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Calvin Coolidge favored businesses therefore favoring the wealthy who invested in these businesses. For an economy to function properly, total demand must equal total supply. What happened in the 1920's was an oversupply of goods. This resulted in the middle-class needing more but not being able to afford more while the upper-class didn't want to buy more goods...
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Three quarters of the U.S. population spent almost all of their yearly incomes to purchase consumer goods such as food, clothes, radios, and cars. This group consisted of the poor and middle class citizens who only earned about $2,500 a year. The upper class, earning much more, were not expected to buy more food, cars, or clothing for their family which most likely consisted of the same amount of people as other American families...
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