The Great Depression was an American economic disaster that affected a lot of Americans, but it affected businesses even more with their product value being lowered. The reason why the Great Depression was a huge disaster is that it sent a whole lot of people to become homeless, not only that it sent huge businesses skyrocketing to the ground. The third and final reason is that the banking system fell to the ground, crashing and burning. The great depression sending a lot of people to be homeless a lot of veterans slept and camped on the white houses lawn but the Herbert Clark Hoover didnt like that all these people were just resting on the lawn of the white house after Hoover kicked all of the veterans off the white houses lawn the but when …show more content…
ford back then was a huge business. it was number 3 in the top 3 businesses. general motors was #1 and chrysler was #2. they were getting huge cash flow from all over the nation and since they were selling so many cars they just built more and more and a lot of cars were not sold so that is the reason why they were getting so much cash flow. had to lower the prices of their cars, they had so many in stock and no one was buying them anymore. while all of this was happening, people lost their jobs because they were not getting any sales since almost everyone in the nation already had a car from one of the three industries, which basically put every one of those car industries out of business “like today, the automotive industry was among the most adversely affected in the crisis. from 1992 to 1932, sales of new automobiles fell by 75 percent—and automobile companies had a combined loss of 191 …show more content…
The reason why the banking system crashed and burned with the banking system, it was the cause of the great depression which put all the businesses to go out of business the reason why is that people in the 1920s would go to the bank, and if they didn't have enough money to buy what they wanted, they would ask the bank for a loan so they could get what they wanted to buy, and the banks doing this they extended credit but new businesses they borrowed to support non stop expansion in output, they kept borrowing and spending even more money on the bank, and they kept spending more money on the bank. After business inventories soared and with civilians learned that banks were failing, “people rushing to withdraw their money from banks caused many bank failures in the United States and elsewhere in 1930–33, decreasing the amount of money available for loans. People who had taken out loans were unable to pay back the