JOHN KENNETH GALBRAITH--THE CAUSES OF THE GREAT CRASH In this article the main(prenominal) economic factors that contributed to the collapse of the sparing are examined. *1921-29 The US was prosperous. We had cars, roads, radios, flight, and fresh construction had begun. *The income was unequally distributed * doer output rose plot of ground prices and wages remained static thus, chiefly businesses profited. *Secretary of treasury Andrew Mellon trim down income taxes to benefit the rich *Those who received the highest incomes had change magnitude passim this clipping of prosperity. Also, it owned a quarter of the US wealth. Hence. The US was extremely dependent on the spending of the rich. *The unions were do frail due to the red scare. The steel industry was fluid works a 12 hour day. This was ended by chairwoman Harding after he pressured Judge Gary, head of the US stigma Co. *We became the worlds greatest creditor after WWI. We had to import more than trade otherwise , we had to yield the debts. The balance maintained through new outside(prenominal) loans. This led to the weaken of the depraveing power of those who depended on exports and nonplus owners would suffer. *These corpo say companies relied on the ultimate holding company. If anything happened to it every1 was screwed.
*The stock grocery was booming and could buy on margin which means that unrivalled could extend his holdings by borrowing funds. Loans increased at the rate of 400,000,000 a month and the interest on them was about 7-12%. * enamor: the boom was self-liquidating. It could break down only as new $$ flowed into the market. at a time the supply of $ began to falter, the ma rket would cease to rise, and many would cas! h in. It crashed in October of 1929 (Black Tuesday). *It could have been forseen because it had happened repetively with... If you want to get a full essay, key out it on our website:
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