**People were buying on margin- meaning that if someone didnt have enough money to buy it, they borrowed it and payed back later. But, banks failed and people couldnt pay back their loans, causing national debt to increase drastically. The raise of interest rates took alot of people out on limb, and caused people to sell their stocks, resulting in a plumet of the stock market. Also, there was a huge lack of government regulation. And inflation was a HUGE issue that contributed to the crash.
--. Causes of the Great Depression
** The drought was a small part, but mainly was an aftermath of the great depression. Unemployment rates were the continuing the lingering effect of the depression. overproduction of goods. hardly anyone bought things from other people anymore... such as goods from factories and farmers and stuff.STOCK MARKET CRASH!!
on Black THursday, people were worried about the mini"crash" that happened. people kinda panicked and they thought that they would sell their stocks on monday that was coming up. but unfortunately, then it was tuesday, and the huge crash occured. Mitchelle was one of the most wealthiest men in the U.S, and he tried to save the stock market, but he ended up loosing all his money, and became poor. he then lived the rest of his life relatively poor.the tarrifs were raised, because our president said to, thinking that people would simply buy american groups, but that didnt go over well. meanwhile, in germany, white supremist groups(Nazi's) were just being fueled to continue...Depression in the cities:people started to loose jobs and their homes, and they ended up being on the streets. african americans were paid even less, due to the racism. latinos were forced to leave because people thought that if you had darker skin, you didnt deserve to live here or breath their air, and even get paid for the work you did. some people left the country to go to the citys to find jobs.. there werent any... They went to HooverVille. they also wore "hoover pants" and "hoover blankets" that were newspaper for the homeless used as a blanket. it was all really a bash towards hoover. they all blamed him for their problems. There were breadlines and soup kitchens to help people out because they were all starving. it became very common, although hoover didnt approve them beacause he says that its not the governments job to provide the poor with food, because it was their job.Depression in the Rual areas:because of the rising debt, alot of farmers lost their farms. 400000 farms were lost in 3 years because of the national debt. the farmers did end up making too much food, and as a result, lost alot of money.
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