JOHN KENNETH GALBRAITH--THE CAUSES OF THE GREAT CRASH

JOHN KENNETH GALBRAITH--THE CAUSES OF THE GREAT CRASH In this article the principal(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 red-brick construction had begun. *The income was unequally distributed * doer output rose darn prices and wages remained static thus, chiefly businesses profited. *Secretary of treasury Andrew Mellon cut back income taxes to benefit the rich *Those who received the highest incomes had change magnitude passim this meter 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 weak due to the red scare. The steel industry was fluid working a 12 hour day. This was ended by president Harding after he pressured Judge Gary, head of the US brace Co. *We became the worlds greatest creditor after WWI. We had to import more than trade otherwise, we had to pardon the debts. The balance maintained through new outside(prenominal) loans. This led to the modify of the barter foring 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 calendar month and the interest on them was about 7-12%. * enamor: the boom was self-liquidating. It could die only as new $$ flowed into the market. at a time the supply of $ began to falter, the market would cease to rise, 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, make out it on our website: OrderEssay.net

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