Black Tuesday Was The Main Cause Of The Great Depression

The Great Depression

Ashley Kuhl Mr.Assareh English I 21 March 2016 The Great Depression The Great Depression was started with many things, but the main reason can be traced back to “October 29, 1929” , also known as Black Tuesday, Black Tuesday was the day that the stock market crashed. The stocks fell “10-15 billion dollars” on that day. The great depression began right after the Roaring Twenties when women gained independence and dancing was on the rage. Why in time where the economy was good and everyone was living comfortably would the economy take such a downfall.

People began buying on the margin. They thought that getting a loan and putting it on the margin, but the stock went down and they couldn't pay back their loan. Everyone

This caused the Stock Market crash and initially the Great Depression.

Overproduction was caused by people making the stuff they couldn't afford. This lead to overproduction of cars and radios. In the end this led to businesses to raise pay so that people could buy their manufacturing product. The companies that went out of business lowered our economy. This caused people to take out loans and that is when run on banks started up.

The run on banks invested money in the stock market and lost money just like everyone else. They also loaned money to stock speculators who lost their money on black Tuesday, just like everybody else. Then people started losing faith that the banks could pay them back so everyone started taking large amounts of money out all at once. The banks didn't have enough money to give everyone their money back and the banks went out of business. Most people lost most, if not all of their money. This caused the uneven distribution of

There has been about 9,000 banks that failed, and “30,000 businesses” failed at this time also. This made it hard to support or even feed your family. This is the time that soup kitchens became common,and used to benefit the rich and the poor. Soup kitchens in the depression helped by feeding the poor and rich had money took off of their tax payment.

People could barely feed their family let alone pay for their house. People started to become homeless and move into hoovervilles. These were made on unused public properties where people made houses out of whatever they could find like, random sheets of metal, Things they brought from their old house, and things other people have thrown away. People managed to survive in these harsh conditions. People who had children and family did this, but men who were by them self were known as hobos.

Hobos ride on the railroad and passed through small communities called hobo jungles. The hobo jungles would tell other hobos where to get food, if it was safe, where they could sleep and where they could work. Hobos wouldn’t stay in one spot for a while. They stayed in places until they couldn't find any more work then they rode the rail roads again till they got to a new