The Stock Market CrashIn the 1920’s the U.S. was in a time of great prosperity. Investors borrowed money from their brokers who got their money from the banks. The economy of 1929 was slowing down and their “need” for things like refrigerators, cars, and radios decreased. People bought stock in companies with all the money they had and lost all of it literally over night. The weakened economy brought a huge number of unemployed.The Great DepressionThere are many causes for the great depression such as the stock market crash of 1929, bank failures, economic policies with Europe, and people buying less. When the stock market crashed in 1929 many people lost their jobs. When the people lost their jobs they had no money to buy the things they wanted or needed. The U.S. government issued the Smoot-Hawley Tariff in 1930 which added a high tax on imported foreign goods. When the banks failed the people lost their savings because the banks did not issue deposits.http://www.angelfire.com/co/pscst/stock.htmlhttp://americanhistory.about.com/od/greatdepression/tp/greatdepression.htm
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