Stock Market Crash: stock market collapsed, stock prices dropped sharply, speculation and buying on margin
Banks Closed: People couldn’t pay back loans to the bank so banks ran short on money
Businesses went bankrupt because people weren’t buying anything and businesses had to lay off people so unemployment rose
Big industries were failing: farming, railroads, textile mills, and mines
Unemployment: Better methods led to overproduction but businesses couldn't sell their products so they didn’t get money thus need to lay off/fire workers, speculation, buying on margin, investors couldn’t pay back loans
Major Goals of the New Deal: (The 3 Rs)
Relief for the poor
Recovery for agriculture and industry
Reform of the economy
Families suffered during the Great Depression:
Homelessness
kids had to work
Poverty
lack of food
couples fought
low self esteem
fighting over money
WWII brought an end to the Great Depression: It created a need for many jobs to make weapons and needed wartime items and as a result people had more money to spend