The Great Depression

Brayden Obermier

Black Tuesday

Black Tuesday was on October 29. That day the bottom fell out of the market and share prices plummeted. People quickly sold the shares they owned before the price dropped even lower. 16.4 million shares were let go on Black Tuesday. This caused the market to crash even farther and caused many people to loose their savings.

What caused these things? And what was the problem with them?

Industries Struggled- Industries like railroads, textiles, and steel were barley making a profit. Railroads were losing buisness due to trucking and other types of transportation. Mining and lumbering industries were no longer in high demand. The coal industry was also hit hard. All those industries crashed so workers were let go and couldnt find other jobs.

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.

How did it effect the United States?

The U.S. went from being one of the richest countries in the world and dropped. They were no longer a financial powerhouse. The great depression dug the U.S in a hole so deep that only world war 2 could get them out of.