Depression In America In The 1920's

In the 1920’s America experienced a boom both culturally and economically. Life had improved for many Americans, but not all. However, the boom didn’t last forever, as at the end of the Roaring Twenties, America was plunged into depression. This meant that unemployment and poverty was on the rise and in March of 1933, 13,000,000 Americans were unemployed. This disaster was caused by many factors including too much speculation, overproduction and under consumption and the government’s policy.
Firstly, speculation means that people invest in a business and buy shares in a hope that the business will make a profit and therefore make a profit on their shares. In America, in the roaring twenties, people saw speculation as a ‘get rich quick scheme.’