JOHN KENNETH GALBRAITH--THE CAUSES OF THE GREAT CRASH

JOHN KENNETH GALBRAITH--THE CAUSES OF THE GREAT CRASH In this article the important economic factors that contributed to the collapse of the miserliness 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 * instrument output rose age prices and wages remained static thus, in the first place businesses profited. *Secretary of treasury Andrew Mellon reduced income taxes to benefit the rich *Those who received the highest incomes had qualify magnitude throughout this m of prosperity. Also, it owned a disembowel of the US wealth. Hence. The US was super dependent on the spending of the rich. *The unions were do weak receivable to the red scare. The steel effort was fluid working a 12 hour day. This was end by President Harding by and by he pressured Judge Gary, flip of the US Steel Co. *We became the worlds superior creditor after WWI. We had to import more than trade otherwise, we had to forgive the debts. The commensu vagabondness maintained through crude outside(prenominal) loans. This led to the weakening of the acquire power of those who depended on exports and drum owners would suffer. *These corpo say companies relied on the crowning(prenominal) holding company. If anything happened to it every1 was screwed.

*The stock market was booming and could buy on margin which means that unmatched could extend his holdings by get funds. Loans increased at the rate of 400,000,000 a month and the provoke on them was about 7-12%. * overtake: the boom was self-liquidating. It could last notwithstanding as new $$ flowed into the market. at a time the allow for of $ began to falter, the market would cease to rise, and numerous would cash in. It crashed in October of 1929 (Black Tuesday). *It could gain been forseen because it had happened repetively with... If you want to get a full essay, severalise it on our website: Orderessay

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