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How Did The Stock Market Crash Lead Up To The Great Depression

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In 1929, the stock market crashed. Many people began to sell all their stocks because they were afraid the stock value was going to decrease. When people bought stocks in the 20s, they bought on margin. This means that they paid for part of the price stock. They borrowed money from stockbrokers to pay for the other part of the stock. This part was called the margin. Many people lost money, and the Great Depression had started. The dust storms in the Midwest destroyed large quantities of crops and left many families desolated. Some farmers lost so much money they could not pay the mortgage on their farm and were forced to rent their land or move. By 1933, the average American had $1/day to live on. Railroads went bankrupt. Most apartment building
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