What Are The Causes Of The Great Depression In America

After the roaring twenties America fell into a dark time that negatively affected the people. This time period is know as the Great Depression. There were many causes leading up to Great Depression. Such as a new system for buying and selling known as the stock market. In the beginning this seemed like a good thing to the people of the Americas. But soon after it had a devastating effect on the economy that can still be seen in the economy of America today. In this first days of this new system known as the Stock Market. Many people went to the bank to receive a loan to purchase stocks from the Stock Market. Stock were a pieces of major and minor companies that the people could invest their money into and make profit from if the stock prices went up. The people that bought stocks also risked the chance off losing their money if the stock prices went down. Due to new inventions being created and the increase of buying and selling
This event was know as the Dust Bowl, or the Dirty Thirties. This was a period of many severe dust storms in the area of North Carolina known as the Great Plains. During this time their was very little rainfall, light soil, and high winds. This was a destructive combination for farmers. This combination caused a lack of stronger root system for crops due to winds easily picking up loose top soil. The topsoil would swirl into dense dust clouds, called “black blizzards”. With so much dust in the air it was hard to breath this caused major lost in cattle and pasture lands and forced more than 60 percent of the population to move. This had a devastating affect on the stock market as well. It caused the stock market to plunge by more than 15% before it even had time to recover. This caused most of the agriculture population of North Carolina to lose everything and go bankrupt. This caused a major plunge in the