The Great Depression: Cause&Effect
Black Tuesday took place on October 29, 1929 and was when the price of stocks completely collapsed. Broker were known for lending investors more than 2/3 of the value of the stock they were purchasing. Over $8.5 billion to be out on loan. the issue with this was that the $8.5 billion was more than the total amount of currency circulating in the U.S at the time.
Lumber, railroads, Lost customers, because there was less demand. And jobs were lost.
Consumers having less money
Americans were buying less because they had less income.
Dust Bowl was wiping out their crops.Less demand for their crops, and people lost their farms.
Living on credit
People relied to much on credit, and they didn't have enough money to pay it back
Uneven distribution of income.
Rich got richer and the poor got poorer. Shanty towns and bread lines were a way of life.