The Great Depression
U.S. vs Canada
A. The Stock Market Crash of 1929
On October 29, 1929, as a result of the stock market expansion and the decline of stock prices, millions of shares, "12,894,650 shares" (Stock Market Crash of 1929), to be exact were traded and the stock market crashed, because of the system's inability to handle what was taking place. This caused investors to lose money and prices to considerably drop or collapse altogether.
The overproduction of consumer goods where more was being produced than society wanted or needed. This was particularly evident within American farmers as they prepared for the war, which resulted in them being in debt. This caused unemployment and even foreclosures.
C. The Gap Between Levels of Society
"More than 60% of the population was living below poverty levels, while a mere 5% of the wealthiest people in America accounted for 33% of the income, and the richest 1% owned 40% of the nation’s wealth." (Causes Of The Great Depression)
D. The Banks
Smaller banks could not handle or keep up with the increasing demand of people wanting to withdraw their money after the Stock Market showed signs of weakness. This caused the closing of banks and added to the lack of spending or credit.
Causes Of The Great Depression | Great Depression Causes, Effects. (n.d.). Retrieved February 21, 2015, from http://thegreatdepressioncauses.com/causes/