Imagine that one day you’re living a life of average or good wealth, good job, and, great homes. Then just imagine that all of a sudden all of that is taken away from you in an instant. You are then left with nothing now roaming these poor American streets in desperate hope of jobs. Unfortunately, events like this did happen in real life and many real Americans had to live with this economic nightmare. The United States suffered one of it’s biggest economic depression from 1929 to 1939 which was known as the Great Depression. The whole nation of the United States had to face poverty. During this event no one really was worried on how it started or what was the cause. Everyone was just worried of how to move on or even survive because at this …show more content…
Installment Buying was a new method of payment introduced in the “Roaring Twenties” where everyone could by things they could not afford. Installment buying allowed these people to pay expensive material through payments. It was also known as “Credit”. This method was very common especially in the “Roaring Twenties” where many people were considered wealthy due to this. Three out of four radios were purchased through the installment plan along with sixty percent on all automobiles and furniture (Doc 6). Since people bought everything they could afford through this method, they stopped buying on everything else and purchases slowed throughout (Doc 10). Installment buying kept people on debt which caused most to stop purchasing on other material. The halt of purchases allowed the economy to fall into a pit. Everyone thought it was necessary to reduce purchases on the Installment Plan because the cutback in buying would “sap the whole economy” (Doc …show more content…
No one really decided to blame a specific person on who caused this because they had themselves to blame only. The most common reason was that it was the stock market crash of 1929 that helped start the depression. The people increased the problem by saving, installment buying, and staying on the business cycle. If people knew these mistakes were doing harm to the economy and stopped right away, the problem wouldn’t have been such a huge deal. It is necessary to know the main causes to the Great Depression so that can prevent such a disaster from happening in this nation again. Maybe then everyone will break the habits of creating these