The Great Depression
On October 29, 1929 the biggest collapse of stock prices fell, this day was called Black Tuesday. What caused the stock market to crash was the rise of real estate values in America. So when the property of real estate in the U.S. rises so do the stocks.
America borrowed over 8.5 billion dollars even when there wasn't enough money in circulation.
Long Term Causes
- Industries: Big business industries could not pay their workers to produce the products. If workers weren't paid they did not work.
- Consumers: if consumers had less money than they were unable to buy any products from their suppliers.
- Farming Problems: Farmers faced tough times during the 20's because of a long drought. This happened because years of plowing and planting left the soil depleted of nutrients and minerals. Since the dirt held no moisture it would crumble and later create large clouds of dirt.
- Living on credit: people would buy stocks with credit, but that is like buying things with money you don't have. So when the market crashed you lost your own money and someone elses money.
- Farmers had to move off their land because they could not make their payments due to the drought they couldn't make crops.