Great Depression

Many things were responsible for the Great Depression of 1929.One factor was the low income among the farmers and the factory workers.The farmers' prices of their goods went down 40 percent, making it impossible for them to make any profit.They were not making enough money to continue paying their mortgages on their farms.Banks began to fail.Many people lost money they had invested in the bank.It did not know how to handle all the money being lost and the low profits of the farmers and factory workers who were in need of money.Another problem was the United State's international trade.The Europeans demands for American goods began to decrease.Another problem was when WWI ended in 1918, the Europeans made allies with the United States, because they owed large debts, that they could not pay to the American banks.In 1929 the Stock Market Crashed.Many people began investing in the Stock Market.Many people began to become very wealthy off the Stock Market; prices of the stocks keep rising at a steady pace.Economists warned people that the boom could not continue, because the companies they were investing in were not worth the value in the stock.People were not listening they continued buying the stocks.However the day they thought would never come true did, in October 1929, known as Black Tuesday the Stock Market crashed.Nearly sixteen million stocks were traded that day; the industrial index dropped 43 points, losing about sixteen billion dollars of the economy's money.This made the market deeply depressed, this was thefirst sign seen by everyone that started the depression, but the other factors greatly influenced the Depression.

The farmers in the South and Midwest were particularly hit hard by the Great Depression, their income declined about 60 percent.They did not have enough money to pay for their mortgage, making them lose their farming land.Also one of the greatest droughts e…

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