The Great Depression During War I Essay

1453 Words Feb 11th, 2016 6 Pages
The Great Depression began on October 29, 1929 when the the stock market crashed and lasted until the late 1930s. During the depression, Banks failed, businesses went bankrupt, and workers lost their jobs. The first cause of the Great Depression was farming crisis. During War War I, the American farmer overproduced crops to dded the soldiers in Europe and many farmer took out loan to expand their land and buy farming equipments. After the war, the demand for crop drop almost 40 percent, which caused the crop price to drop. Farmers could make enough money to support their families and pay their debt, so they were forced to leave their land and go elsewhere to find work. The banks could not get their money back and the flow of consumer demand also stopped because farmers had no money to buy consumer products. The second cause of the Great Depression was the stock market. Before the Great Depression, were very little rules to regulate the stock market. People often bought stock on margin, which meant that they only paid about 10 percent of the stock price and borrow the rest from banks. they also engaged in speculation by buying a stock and selling it right away to make a quick profit. When the stock market crashed, the speculator lost their fortune and banks failed because they could not get their money back, which also cause the depositor to lose their life saving in the bank. Hoover was elected president in 1928. He supported rugged individualism, which meant that the…

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