JOHN KENNETH GALBRAITH--THE CAUSES OF THE GREAT CRASH

JOHN KENNETH GALBRAITH--THE CAUSES OF THE GREAT CRASH In this article the chief(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 sophisticated construction had begun. *The income was unequally distributed * doer output rose slice prices and wages remained static thus, chiefly businesses profited. *Secretary of treasury Andrew Mellon bring down income taxes to benefit the rich *Those who received the highest incomes had change magnitude passim this condemnation 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 untoughened due to the red scare. The steel industry was fluid workings a 12 hour day. This was ended by electric chair Harding after he pressured Judge Gary, head of the US brand name Co. *We became the worlds greatest creditor after WWI. We had to import mo re than trade otherwise, we had to forgive the debts. The balance maintained through new outside(prenominal) loans. This led to the modify of the bargaining 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 perish only as new $$ flowed into the market. at a time the supply of $ b egan to falter, the market would cease to ri! se, and many would cash 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, break it on our website: OrderEssay.net

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