While I was reading about both the causes of the great depression and the causes of the stock market crash I found out a couple of things so I picked what I thought was the most important and I wrote them all in this blog....THE CAUSES OF THE GREAT DEPRESSIONOne of the main causes of the great depression was the unequal amount of wealth distributed, because most of the money only went to the rich people and the middle class people.Stock-buyers started to get loans from the banks because the stocks were a hot commodity in the marketplace. But if the stocks dropped in value aand investers were not able to pay the banks back the bankds would be left holding no collateral.During the worst part of the depression people started to lose jobs a lot more almost one out of every two U.S person in a house went deirectly to unemployment or underemploymentBut.... Andrew Mellon cut the taxes so a lot of people were able to buy some of the things that they needed.Even knowing all of that we still know that the biggest cause was the stock market crash.The Depression's impact on the economy1929 1933Banks in operation 25,568 14,771Prime interest rate 5.03% 0.63%Volume of stocks sold (NYSE) 1.1 B 0.65 BPrivately earned income $45.5B $23.9BPersonal and corporate savings $15.3B $2.3BTHE CAUSES OF THE STOCK MARKET CRASHAlso known as the wall street crash of 1929... The stock market crash lead to the great depression now we just have to figure out what caused the stock market crash. One of the ways to make money during the time of the 1920s was to buy stocks but onces the prices of stocks went up investors kept them for a short time and sold them with a good profit. With goods such as cars and washing machines it was really prossible to buy the stock on credit this was called buying on the margin. So with all the stock prices going up and inverstors not being able to keep the stocks for all that long they started running out and that is what caused the crash.I think that the people during that time was not lucky at all. I am happy that they got through the great depression and the stock market crash but it sucks that it happened.pictures....
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