Great Depression Dbq

The Great Depression was a time of poverty and hopelessness caused by many different events. How would you feel if you couldn’t go out and buy something you really want because you don’t have any money? I personally would feel really angry if I couldn’t buy something I really wanted. The Great Depression is a very good example of why people couldn’t do this. The main cause of the Great Depression is mainly economics(Background Essay). The law of supply and demand according to the Background Essay, is that if the supply of goods increase, and if the consumer demand stays the same, then the prices will drop. The Great Depression was very terrible in relation to other events. Such as the Stock Market Crash, which happened prior to. There are many contributing factors to the Great Depression. One contributing factor of the Great Depression is the Business Cycle. The term Business Cycle is when the economy goes through a roller coaster-like experience because there are many ups and downs. Document 1 is a chart from AmeriTrust Co..The main idea of the business cycle is that it shows what the economy goes through. The stages of the business cycle are: economic troug (a low point), recession (a very low point), and depression (a very, very low point). Workers who work in this economy have no money left because of all of these phases. Sometimes troughs will disappear when prices get so low that the poor people start to buy goods. People who are in the middle class notice that the economy is recovering from the downfall and start to buy things again. Recovery is when the business cycle goes through all of the phases, and finally gets out of it all. This happens because people start buying new cars, boats, and radios. Production and business resumes where it left off, and this increases stocks. The Business Cycle was a contributing factor to the Great Depression because it went through many low point phases. In the end it eventually got back on it’s feet again due to mass production, but it took a while. The Business Cycle is so important because it shows that our economy can handle anything and …show more content…
This factor relates to contributing factors of the great depression because investors would be so excited that they get to invest on something that they make poor decisions. You put your money down on something you have no idea about, and your money can get taken away or you win something and keep the money. According to Document 5, Speculation is also a main cause of the Great Depression. It is clear from evidence in this paragraph that Speculation was one of the main contributing factors of the great depression. Another contributing factor to the Great Depression is The U.S. Family Income Distribution. The U.S. Family Income Distribution calculates what percentage of people earn an annual income from $1,000 and lower through $10,000+. The graph in Document 9 states that 21% of the U.S. earns under $1,000, 21% earns $1,000-1,500, 18% earns $1,500-$2,000, 32% earns $2,000-$5,000, 6% earns $5,000-$10,000, and 2% earns over $10,000 in the year of 1929. The majority of the United States earns $2,000-$5,000 per year. According to the document, “The wealthiest 5% of the US population received about 33% of the nation’s personal income.” This means that they