Great Depression
Storyboard Text
- The period leading up to the Great Depression was full of prosperity- but only for the rich and powerful. American wealth was divided unequally and most Americans were without enough money to take care of their families.
- Fascinated with the Stock Market, many Americans began buying stock in companies with a poor understanding of how it actually worked. Most of them bought their stock with credit, or money that they didn't have now, but hoped to have in the future.
- Relative prosperity for farmers meant that they were producing an excess of goods. More crops were being put on the market than people could buy, sending farmers into debt and lowering the prices of food.
- "Installment buying" meant that people were spending money that they didn't have to buy luxury items that they didn't need. When it came time to pay the bills later, they had no money to pay of the items they bought.
- The US Government kept taxes on businesses low, hoping to allow business to grow. However, this allowed unfair monopolies to form.
- When the stock market crashed, it created massive financial panic that put the final straw on the camel's back. As many Americans had invested using credit, they were put in debt. The massive withdrawal of money from the stock system caused businesses to go under.
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