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Great Depression (Banks Began to Fail (The banks did not have any money…
Great Depression
Banks Began to Fail
The banks did not have any money due to an excess of unpaid loans, so they had no money to give out.
Nobody had money to pay for their objects and stock which led to a lack of money circulating in the American economy.
Bank Loans
People could no longer pay the bank back, so they did not have any money left for themselves or for others and it failed.
There was a lot of money being loaned out to people because there was an abundance of wealthy people or people trying to be wealthy.
Food Surplus
The price of food declined, sterile land was abundant, farmers stopped farming.
WW1 soldiers needed more food, so more food was farmed.
Dust Bowl
There was no fertile land to farm which led to a lack of nutrients. Without nutrients, the land was not farm-able and became vacant with only dust.
This led to health problems, no food production, unemployment, and distress across the United States.
Stock Market Dropped
The banks failed, so people sold their stocks in order to avoid another payment that they could not pay off.
This led to the end of the roaring twenties, and it began the poor economy and social system in America.
Hoovervilles Began
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This led to health problems, a lack of government help, and a low social status across the United States.
Roosevelt Elected
This led to less poverty, more production of food and goods, a lower unemployment rate, and happier citizens of America who would eventually re-elect him three times.
Roosevelt established the new deal, created more jobs, resolved issues with the banks, and put more money into the economy that gave people a higher status in America.
Hoover Projects
Hoover made a final attempt to create money flow in the economy by proposing large government projects to improve life in America.
This led to new jobs, more money circulating in the economy, unemployment rate dropping, farms starting back up, etc.
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This eventually failed when people could no longer pay back the money they took out using credit. This was one of the causes.