Imagine waking up one morning, only to find out that all your investments and savings are gone. So if your bank that you invested all your money in collapsed, you didn’t get any money back. This is what happened to millions of Americans during the 1930s. This era was called the great depression.
The great depression was one of the worst economy issues we have ever had in history. It was a hard time for everyone. The great depression started in 1929 till 1939. Tons of banks closed down and about 9 million savings accounts were lost. Tons of companies and factories went under. About 15 million people were unemployed.
There are many causes of the great depression. One main cause was the crash of the stock market.
Overproduction had a part in causing the great depression. It was a big concern for the economy. In the 1920s, the factories kept making and making consumer goods to meet the high demand. But the wages could not keep up for the people to purchase all that the companies were producing. Which this made invetors grow.
The farmers were in very bad shape also. They had to lower their prices on wheat and grain. They wasn’t making that much profit off of it. Some farmers couldn’t afford to pay their mortage on their farms and was forced to either rent their land or move off their land. It was a really hard time for farmers during this time.
Buying on credit became a really big problem in the 1920s. Because the 20s was such an economic boom no one ever thought that something bad would ever happen in the future. Credit aloud people to buy luxury items by using money they didn’t have. Installment buying made them have to pay it back either monthly, weekly, or yearly. By the people buying stuff on credit and using installment buying they went in debt. They didn’t have enough money to pay back all their debts. If they missed a payment on an item they would take the item away from them since they couldn’t pay...