2007-08-13 07:41:33 · 3 answers · asked by Jennifer 2 in Social Science ➔ Economics
A complicated mix of overregulated banking, insufficiently diversified economy, low margin requirements in the stock market, and downright stupid fiscal policy...
2007-08-13 10:59:21 · answer #1 · answered by NC 7 · 1⤊ 0⤋
The big thing was that during a downturn in the business cycle (a normal occurrence) the central bank and private banks began a tight money program that is raised interest and did not loan out money. That hurt investment. The government at the same time raised income taxes just at the time when lowering taxes would have been helpful. This hurt consumption. With both investment and consumption decreasing and with sticky prices, goods could not be sold, then production slowed, people were layed off incomes decreased further and the downward spiral continued
2007-08-13 15:27:26 · answer #2 · answered by haggismoffat 5 · 0⤊ 0⤋
The criminal element in government caused the "Great Depression"
2007-08-13 14:57:32 · answer #3 · answered by Anonymous · 0⤊ 0⤋