Great Depression

In a DBQ about the Great Depression, what would be a good big context? I was thinking possibly industrialization because it led to overproduction of goods but I am not sure. Thank you!

Some good SFI for contextualization would include: the Roaring 20s, the stock market crash of 1929, consumer culture, & the advent of buying with credit. Industrialization might be a bit too early and too broad, but if you connected it into increased agricultural production after WW1(which led to an agricultural economic depression by the mid-1920s), it might work.

I think it is good to explain the historical situation that led to the stock market crash. Despite the appearance of wealth and frivolity of the roaring 20s, the economy was actually quite weak, because the richest five percent of Americans owned 34% of the nation’s wealth. As the popularity of newspapers grew, farmers and laborers began to see that people were growing rich in the stock market, and many of them wanted to invest. Unfortunately, unlike the Rockefellers and Carnegies, these people could not afford to lose money, so when the stock market crashed, they lost their life savings. Many of them also invested by buying on the margin, which meant that they actually paid part of the stock and then borrowed the balance from a bank. When the market crashed, they not only lost everything, but they also owed money to the bank.

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