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The Causes Of The Great Depression

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The Great Depression lasted from 1929 to 1939, it was the worst economic downturn in the history. The Great Depression began after the stock market crash of October 1929, which sent Wall Street into a panic and destroyed millions of investors. Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and employment as failing companies laid off workers. When it reached to the lowest point in 1933, many low and middle-income families became homeless, and around 15 million Americans were unemployed and nearly half the country’s banks had failed. Also, the Great Depression was necessary in order to stabilize the American economy. The distrust of the stock market and the economy lead to many hate the government because of their inaction against the poverty that was going on. The Great Depression indicated how fragile the American economy was and instrumental in the overall development of mass production of consumer goods that led a collapse in jobs, individual wages, and bank accounts. The Great Depression happened because of the stock market crash, people were buying on margins and the stock market ballooned out of control causing it to crash and many Americans who only invested in the stock saw their fortunes disappear overnight. In addition, Americans were withdrawing money at an unprecedented rate. As banks closed so did other businesses that were connected to it. The stock market crash also impacts other nation’s

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