Effects of the Great Depression - Coggle Diagram
Effects of the Great Depression
Banks loaned out huge amounts of money in the 1920s.
Many people spend it buying shares
When they couldn't pay the money back the banks went bankrupt and bank managers, and their staff, lost their jobs.
Many farmers had been losing money for years.
New farming methods meant they produced too much food, so they dropped prices to try to sell the excess.
Many farmers also had equipment bans from banks that were now demanding their money back.
With less money coming in, some farmers couldn't afford to pay their debts or mortgages. They faced losing their farms and having to sack their workers.
As a result, many farmers couldn't pay their mortgages, and by 1932, one in 20 farmers had been evicted
With so many people unemployed, farmers couldn't get good prices for their food.
Poor farmers in Iowa used guns and pitchforks to chase away government officials who tried to evict farm owners who couldn't pay their mortgages.
Many investors lost a fortune during the Crash.
They often tried to pay off their bank loans by selling their valuable belongings, such as cars.
Some people even struggled to pay their rent and and faced homelessness.
20,000 companies went out of business.
Around 13 million people had lost their jobs by 1932.
Between 1929 and 1932, factory production dropped by 45% and house-building fell by 80%.
12,000 people a day were losing their jobs
Around 250,000 Americans stopped paying their mortgages in 1932 alone and within weeks most were evicted from their homes. Many took to living on the streets.
Many unemployed people were reduced to begging or picking over rubbish dumps earning a few cents a fay sorting bottles and cans.