The Great Depression
What caused these things? And what was the problem with them?
Consumers Having less Money- Prices were rising for goods and people didn't have the money to pay for them. The gap between rich and poor expanded.
Farming Problems- Drought was causing huge problems for the farmers. Their crops died and they lost their main source of income. Dust storms raged through the midwest causing cattle to die and pushed settlers back east.
Living on Credit- Many people lived on credit. After the stock market crash people could not pay off the credit that they owed so some people lost everything.
Uneven Distribution of Income- During this hard time the poor got paid even less and the rich got paid more. This widened the gap between rich and poor. This hurt the economy even more because most of the people couldn't buy goods that the factories were producing.