Great Depression In The 1920's

The golden age of america began rather unexpectedly in the 1920’s. All facets of america began to truly blossom, especially the economy. The average american found himself not so average anymore, as wealth grew dramatically across the board.. For the first time many people had begun to have tremendous purchasing power, and there was seemingly no end in sight. Consumers were buying at a record setting pace, nearly faster than any other period in american history. Nearly everything was going just perfect for the first time in america’s history, however it proved to be short lived. This bubble that encompassed nearly the entirety of the great depression popped in the blink of an eye.. Towards the end of the “Roaring twenties” just about everything

In the early 1920’s, many people were buying stocks on margin. This meant that people put forth some of their own money, and the rest was loaned in order for them to buy in the market. However as mentioned previously, the market was blossoming. This triggered people to not really think about paying back the loans they took when buying on margin. This proved to be very costly. As if the crash wasn't bad enough, those who bought on margin were in deeper trouble. Not only did they lose their value in stocks, but they could no longer afford to payback their loans. This only spiraled further and further and left many in poverty, and proved to be one of the main catalysts in why the depression occurred. In the 20’s many people were buying using loans. Do to the prospering market, people never really thought about paying them back until it was too late. This meant doom for many who were still heavily invested in the market when it finally crashed in

The Dust Bowl was the name given to an extremely terrible environmental disaster that engulfed a large portion of the united states. This disaster nearly matched up perfectly in terms of time with The Great Depression. A series of events including drought, and very ill advised farming practices lead to nearly inhospitable land. The once lush soil had turned to fruitless sand and dust. The big issue with this disaster is that it took place in the heartland of america. This portion of america was primarily used for agriculture, and the fact that it was no longer able to produce food was very costly. This not only affected crop output and food prices, but it also hurt the farmers themselves dramatically. This was yet again another large cause of the