Though the stock market collapse did not cause the Great Depression by itself, it was a major factor. Other economic factors creating the Great Depressions were an over- dependence on mass production which required mass consumer spending, an unequal distribution of wealth which created an unstable economy, and extensive stock market speculation in the late 1920’s.

Mass production of goods required mass consumption, however, the average American did not have the money to make cash purchases, so they abandoned the old tradition of saving for what they wanted and began purchasing on the installment plan. According to a study done by the Brookings Institution, in 1929 “0.1% of Americans controlled 34

Some topics in this essay:
World War, Henry Ford, Black October, Telephone Telegraph, Depression Stock, October December, President Coolidge, Brookings Institution, Allies America, Supreme Court, stock market, european nations, purchase products, money purchase, stock market speculation, market speculation, world war 1, production required, jobs lost, required mass, mass production required, industrial production, production required mass, depression stock market, growing gap,