What Is The Cause Of The Great Depression

The Great Depression was a point of time in history where people thought everything that could have gone wrong went wrong. Everyone was loosing their jobs, people were lining up in soup kitchens, and all the banks were running out of money. American was made up of immigrants, and those people had come to America to escape this kind of depression to have a better life. In the 1920’s people seriously believed that the stock market could go up and up forever. Also people were investing in things often with money they didn’t have, everyone was having fun and had a surplus of things and never thought that one day it would all go downhill. When that day came, people panicked and by 1931 everyone wanted to get their money out of the banks. The problem with that was that banks don’t have all of everyone’s money in the bank, they only so much money there at once.
Banks all over the country started to shut down. In 1931 alone over 2,000 banks shut down, by 1933 over 4,000 banks closed. At this time they had President Franklin Roosevelt, who served four terms during the Great Depression, to look up to. Roosevelt took action to try to turn the country around and make it better for the citizens. What Roosevelt thought the Great Depression revealed was deep deficits among the society. He declared a bank holiday on March 6,7,8, and 9th of 1933, so the government could access the banks and declare which were worth saving. In 1933 the FDIC was created, this meant the depositors knew that if their banks failed they would still get there money. This encouraged people to leave their money in the