emplyment->income->consumption->production->employment......production drops means laying off peoplelaying off means less incomeless income means less consumptionless consumption means less production........and vice versabanks were loaning to people that counldnt pay it so they stopped loaningpeople didnt have money to buy to things...ect...New Dealhelped end the great depression...ended and things started to fallWWIIreally ended the depression...Blog DiscusionCauses of the Stock market crash1)people quit buying things(see cycle above)affordable new technologyonce they had something no need to buy morebuying on credit put them in debt2)income went up but didnt benefit the common person only the rich3)increased intrest ratespeople thought they were losing faith in the economy4)lost faith=selling stocks=stocks lose value5)companies arent making money6)stocks overpricedpeople rushed to sell.......7)banks close--people not even involved in the stock market lose money8)produced too much of a product
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