Great Depression Dbq

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The exciting and prosperous decade of the 1920s suddenly ended when the world faced a severe economic crisis known as the Great Depression. Most men were unaware of the upcoming crash of the economy and were left penniless. What led up to this catastrophe that not only affected our country but the world, globally? After the 1920’s many people began thinking they could get rich easily by buying stocks. This was the beginning of many unexpected problems such as stock market speculation, the failure of many banks, and the problem of overproduction and underconsumption.

The roaring twenties brought hope to millions of Americans that wanted to get rich. Many didn’t fully understand the risks that came with investing in the stock market. They believed …show more content…

Due to many people using banks to lend them money in order for them to buy stocks they got into debt. Many investors were unable to pay their loans causing banks to fail. In a New York Times edition in October 29, 1929 (Document 3) it states, “ Stock Prices Slump $14,000,000,000 In NationWide Stampede To Unload Bankers To Support Market Today.” Many banks lent money to speculatory stock investors. When these stocks crashed banks were left without money and many had to close down. People lined outside of banks for hours to try and get their savings money out. This was impossible since banks did not have enough money. Millions of people lost their savings and were unable to get the money they needed to support their families. This also led to a big rise in unemployment. The Historical Statistics of the United States (Document 4) informs us that rates drastically rose from 5.3 to 14.2% of Americans losing their jobs. This happened because so many people lost their money. Businessmen were no longer able to pay all of their employees full time and had to lay off workers that needed this money to feed their families. After losing everything many people completely lost

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