What Was The Main Cause Of The Great Depression In The 1930's
The Great depression which lasted from 1929 to 1939, it was the chain reaction of the stock market crash of 1929. The Stock market crash was when many investors pulled out there shares all at once. There was a “black thursday” where 12.9 million shares were traded, and “black tuesday" where 16 million shares were traded. Many of the shares that were pulled ultimately had no value, and a majority of those stocks were bought with borrowed money. For example, if a person buys 100 shares at $10 a share that is a total cost of $1,000. They only had $300 in cash to buy the shares so they borrowed $700 from the bank. When the Stock Market crashed the shares went down to $2 per share. That means when they sold the shares back they only made $200. But, they borrowed $700 from the bank which they would have to pay back. So, they give there $200 dollars to the bank and all they owe left is $500. So they lost their investment of $300 and they still
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Since they couldn’t afford a roof over there head or there families head they formed Hoovervilles. Hoovervilles were named after the president Herbert Hoover. Hoover was the president during the beginning or the depression. He was hated because he didn't know exactly what to do, so he just let the depression run its course. Along with starvation, people no longer had fresh running water or bathrooms. They would go to the bathroom on the streets and since many lived in Hoovervilles it was especially difficult because many people got diseases. Many people were affected by the great depression. by 1939, over 15 million people or about 20 percent of the United States population were unemployed. Many were in debt because they sold their shares, but they didn't make any profit since they owed the bank money. Roosevelt put in new legislation along with creating new agencies to help aid in never having another great
Since they couldn’t afford a roof over there head or there families head they formed Hoovervilles. Hoovervilles were named after the president Herbert Hoover. Hoover was the president during the beginning or the depression. He was hated because he didn't know exactly what to do, so he just let the depression run its course. Along with starvation, people no longer had fresh running water or bathrooms. They would go to the bathroom on the streets and since many lived in Hoovervilles it was especially difficult because many people got diseases. Many people were affected by the great depression. by 1939, over 15 million people or about 20 percent of the United States population were unemployed. Many were in debt because they sold their shares, but they didn't make any profit since they owed the bank money. Roosevelt put in new legislation along with creating new agencies to help aid in never having another great