How Did The Great Depression Affect The Economy

The great depression was caused mainly due to the Stock Market Crash of 1929. This was a widespread panic that hurt investors and cost many people their jobs. On the infamous date where the stock market began to crash, investors rushed to get their investments out of the market before it was too late. Individuals also ran to banks to get their money out of the banks but it was impossible for the banks to give everyone all of their money because they had invested a large proportion of the people’s money into the stock market. Banks cannot just grab every person that has money in their bank out at one time, it is a process to do so when everybody tried to get their money at once a panic occurred. This panic hurt the economy as a whole because not even the banks were able to get the people’s money out of the stock market because of the crash. Therefore, the economy was in ruins at this time with no
They were unable to buy crops to sell to the public. Insufficient funds forced many farmers to pack up and move out of the rural areas during this time period. The Dust Bowl also made it very hard to grow crops for farmers down south. The Dust Bowl was a big part of the Great Depression because it became nearly impossible to grow crops throughout the Great Plains. This was a direct result of the lack of soil due to the harsh rate of production farmers put the land through in the years before the 1930’s. Farmers had been growing crops over and over again on the same exact land without giving it any time to rest that the soil turned mostly into dirt and was not compact. So when the winds began to pick up, the dust was taken from the land causing damage to people’s crops and homes during the time of the Depression. In many cases during the Dust Bowl, people were injured or even suffocated because of the dust. Farmer’s inability to grow crops for the country hurt the economy and aided the