Today we continued in our discussion.
Banks and Businesses Collapse:
Banks started closing because the banks were investing peoples money into the stock market, and when it finally crashed, they lost alot of money.
Depression in the Cities:
Businesses started laying people off and then after they got laid off, businesses closed. It hit the city hard because most factories were in the city. Owners of houses had to start evicting people who lived in their rental houses, because they were making no money. Teenagers started dropping out of school, to stay home and help with their families. People would hop onto trains and go to the next city to try and find a job.
Depression on Farms:
Most people lost their farms because they couldn't afford it. They had no way in repaying their loans, when they couldn't even grow their own food. 400,000 farms were lost in this transition, and the ones who lost their farms moved to the city, where they had it no better.
The Great Depression had a cycle.
People weren't spending money->Businesses don't make money->Lay people off or close down
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