What Is The Cause Of The Great Depression In The United States
The United States had been the strongest nation in the world until the Great Depression hit. The Great Depression was a time period where the United states were hurting financially. Many people often refer to the Great Depression was due to the Stock Market crash of 1929. That is simply not true. The Great Depression was not caused by one single event or even happened over night. Several Factors can be contributed to the creation of the Great Depression.
The United States before the Great Depression. The economy of the United States was booming during the 1920s. The United States during the 1920s were often referred to the Roaring Twenties. During this time period the United States was experiencing an amazing economic boom. There was mass production in the manufacturing, telecommunication, movie and chemical sectors (DeGrace). The United States were experiencing the greatest moments in US history up to that moment. People were trying new things. For example, Women were wearing shorter dressing, one piece swimsuits, and were getting haircuts to where their hair wasn’t …show more content…
“Throughout the 1930s over 9,000 banks failed. Bank deposits were uninsured and thus as banks failed people simply lost their savings(Kelly).” Banks were failing to due to installment payments. Back in the 1920s the United States didn’t have a credit system, therefore making it easy for someone to take out loans. Many banks would carelessly loan out money as people never had to prove to them that they were trustworthy people. People would grab loans to buy the new technology that was created during the 1920s. When the Great Depression hit no one could pay off the loans so these people were in extreme debt. They bank would then fail as they were unable to make money and unable to give people their money when they demanded it. Bank failures caused many people to lose large amounts of money, which would perfectly set up the Great
The United States before the Great Depression. The economy of the United States was booming during the 1920s. The United States during the 1920s were often referred to the Roaring Twenties. During this time period the United States was experiencing an amazing economic boom. There was mass production in the manufacturing, telecommunication, movie and chemical sectors (DeGrace). The United States were experiencing the greatest moments in US history up to that moment. People were trying new things. For example, Women were wearing shorter dressing, one piece swimsuits, and were getting haircuts to where their hair wasn’t …show more content…
“Throughout the 1930s over 9,000 banks failed. Bank deposits were uninsured and thus as banks failed people simply lost their savings(Kelly).” Banks were failing to due to installment payments. Back in the 1920s the United States didn’t have a credit system, therefore making it easy for someone to take out loans. Many banks would carelessly loan out money as people never had to prove to them that they were trustworthy people. People would grab loans to buy the new technology that was created during the 1920s. When the Great Depression hit no one could pay off the loans so these people were in extreme debt. They bank would then fail as they were unable to make money and unable to give people their money when they demanded it. Bank failures caused many people to lose large amounts of money, which would perfectly set up the Great