What Caused the Great Depression?
The Great Depression was started for many different reason building up. Some of the reasons are people gambling on stocks, people purchasing things they couldn’t afford. Then people stop buying once they ran out of credit as a effect production begin to slack so workers became laid off. It all started in 1929 when the stock market crashed on October 29, 1929. Stocks were invented for buying and selling shares of a company. Because people were writing and advertising stocks and tell them they will become rich people went out and bought stocks and only months later the stock market crashes which means they all lose money. Once the people lost their money depression was formed. People lost their jobs because no one had any more credit to buy goods , so those who made the good lost their job which made everyone broke. People lost their home and other things which caused people to try and sell their cars for low prices. The three causes of the Great Depression were debt, speculation, and the business cycle. One of the causes of the Great Depression was people going into debt. Debt is when you're buying all sorts of things with the money you don’t have and have to pay back , people couldn’t afford to pay it back. People who …show more content…
Speculation is when people buy shares in a company not know if it’s going to create profit. People would gamble on stocks, which most of the time result in losing money. According to document A History Of The American People the ‘’exchange became a betting ring where people gambled on stocks in such the same fashion that gamblers wagered on roulette or horse races.” It’s showing how bad the habit of gambling over stocks became. When people gambled they were basically using credit putting themselves further in debt, and then they were just money gambling. Which means that they were in double trouble because they were going in debt and losing
The Great Depression was started for many different reason building up. Some of the reasons are people gambling on stocks, people purchasing things they couldn’t afford. Then people stop buying once they ran out of credit as a effect production begin to slack so workers became laid off. It all started in 1929 when the stock market crashed on October 29, 1929. Stocks were invented for buying and selling shares of a company. Because people were writing and advertising stocks and tell them they will become rich people went out and bought stocks and only months later the stock market crashes which means they all lose money. Once the people lost their money depression was formed. People lost their jobs because no one had any more credit to buy goods , so those who made the good lost their job which made everyone broke. People lost their home and other things which caused people to try and sell their cars for low prices. The three causes of the Great Depression were debt, speculation, and the business cycle. One of the causes of the Great Depression was people going into debt. Debt is when you're buying all sorts of things with the money you don’t have and have to pay back , people couldn’t afford to pay it back. People who …show more content…
Speculation is when people buy shares in a company not know if it’s going to create profit. People would gamble on stocks, which most of the time result in losing money. According to document A History Of The American People the ‘’exchange became a betting ring where people gambled on stocks in such the same fashion that gamblers wagered on roulette or horse races.” It’s showing how bad the habit of gambling over stocks became. When people gambled they were basically using credit putting themselves further in debt, and then they were just money gambling. Which means that they were in double trouble because they were going in debt and losing