What Are The Effects Of The Great Depression Essay

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Do you want to easily make some money? Well now you can’t, because the stock market crashed on Tuesday, October 29, 1929. This is now known as Black Tuesday because this is the start of our Great Depression. It is started by the collapse of the market, overproduction of farmers and factories, and under-consumption. Now there is no more money for extra items so companies are shutting down, causing people to lose their jobs. And if people don’t have jobs, they can’t earn money to buy things, causing more companies to close down. So, we are now in a circle of poverty and depression. One of the causes of this Great Depression is the crash of the stock market. People began to buy securities because the stock prices started to rise. This is a…show more content…
But there is still a lot more problems that we are facing. Farmers were already struggling since the end of WW1 because they were encouraged to produce more food for the war, so they bought more land and machines with borrowed money. When Americans started to lose their money, they couldn’t afford farm products and so the prices had to be lowered. So, farmers couldn’t repay their loans and are in debt, they also had a surplus of food (overproduction). They are also not getting enough help from the government because Hoover doesn’t believe in direct-aid. And now they have to deal with the heat and dust bowls interfering with the conditions of their crops. But every day people are hit very hard too. They either lost all their money from the collapse of the stock market or lost everything that were in their savings accounts. So, people aren’t buying as much, so factories shut down. This causes a lot of people to lose their jobs, and without a job, they can’t earn money. People of wealthy and power aren’t hit as hard as average Americans, but they are also going through problems and are losing their items too. Now the housing market also crashes because people can’t afford a house no longer and now they are desperately trying to find shelter. People can’t buy their food as they used to do so now they go to bread lines and soup
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