Depression: The Many Causes Of The Great Depression

940 Words4 Pages
The Great Depression was catastrophic. It was a critical time period in our history when our economy crashed. People lost their jobs, and families became homeless. Back then, two million people were homeless(Timeline). Today, 564,708 people are homeless(Social Solutions). The Great Depression has helped shape the United States to become the way we are today. There are numerous reasons this economic catastrophe happened. The Great Depression lasted from 1929-1939(History.com) President Hoover is widely blamed for this. However, he may not be entirely at fault. Four of the many reasons the Great Depression started are an unequal economy, credit disasters, worldwide depression, and high unemployment. The unequal economy was showing signs of an economic disaster in the 1920s. The farmers were getting lower pay, and the rich people were selling their stock to pay off their debt. When all of the wealthy people sold their stock, the stock market went bankrupt. Credit was also a big issue. For the farmers, they had to keep their businesses running, and since they didn’t have enough money to buy supplies, they used credit. They also bought land using credit. To buy cars, citizens used credit if they didn’t have enough money. However, when farmers and consumers (the citizens) didn’t pay off their loans, banks shut down because they had no money left. Not only was the U.S. in a crisis, but other parts of the world were too. The worldwide depression struck not only the U.S. but also
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