Blog number 1 causes of the Great Depression and the Stock Market Crash of 1929There are many causes of the Great Depression. In the late 1920’s these businesses were not doing good – railroads, textiles, mining, lumbering, and steel. Also cars, construction, and consumer goods went down. New houses weren’t being built as much. Farming went down the most. After World War 1 the crop prices went down more than 40 percent and the demand went down also. When the demand for crops went down then the farmers started to run out of money and then the banks ran out of money. People were spending less money because the makers of products didn’t get money. From selling them because no one was buying them because they didn’t make enough money. When people didn't have enough money to buy things now they would buy on credit which ment they could buy now and pay later. The Americans bought things on credit where you would pay a certain amount a month with interest. People usually didn’t spend as much money because they couldn’t afford it because of debt they couldn’t pay off easily.
In the late 1920’s the stock prices went up and down. People bought stocks and bonds to get a fast profit with out thinking about all the risks. Some people started to pay a small percent of a stock’s cost as a payment and borrowing what was left of it. Positive things started to go negative then people began to sell their stocks because of fear that they would loose their money. October 4th everything went bad, so people were lucky they pulled their money out. Black Tuesday was on October 29th that’s when the worst time was when people lost money. Fredrick Lewis Allen described what all happened. Thousands of fake companies were formed to trick unaware investors. 1929 to 1940 the Great Depression was and unemployment rose tremendously. People lost all their money because banks didn’t insure that they would get their money back. 1929 1.6 million workers with out jobs and in 1933 13 million. November in 1929 president Hoover uplifted people to remain positive about the whole situation.
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