Wednesday, February 18, 2009

Causes of the Great Depression- Lack of Diversification

The lack of diversification lead to the great depression because when a country is making lots and lots of the same thing the value goes down. It was seen early on in farmers because after the war there was not as high of a demand for crops as there was during the war(because Europe was making its own crops now) and there was a surplus and poor farmers would go bankrupt because they couldn't pay back loans and they made no money off of crops. This was the same sad story and it could be told for almost any profession during this time. That's why the lack of diversification of jobs left the USA in the great depression.