How did the stock market crash negatively affect the economy and why did it crash?
- production had already declined and unemployment had risen, leaving stocks in great excess of their real value. Among the other causes of the eventual market collapse were low wages, the proliferation of debt, a weak agriculture, and an excess of large bank loans that could not be liquidated.
There were less demand for consumer goods which caused loss of jobs.
Consumers haing less money
Americans were buying less because they were not making enough in income.
- Farmers incomes dropped from $10 billion to $4 billion because of less demands.
- Farmers also couldn't pay the debts causing many to lose farms.
Living on Credit
People relied too much on credit and when their wages dropped or they lost jobs they were unable to make payments.
Uneven distribution of income
The rich got more money and the poor got less money, the poor had to stand in bread lines to get food and many lost their homes and were forced to live shanty towns.
How the Great Depression affected the United States and its poeple
- It nearly aspected everyday lives
- Businesses closed, people lost their jobs
- Some people started to hunt
- Some people worked in the worst conditions just to get pennies