The context of the great depression is world war 1 the great world was fought in europe leaving the us economy untouched this allowed the u.s to become a trading giant as they began to mass produce everything. After evaluating and weighing the evidence installment buying and the stock market crash were the major causes of the great depression. Before the great depression having debt was no longer shameful because of this people kept buying and buying, 3 out of 4 radios were on installment plans and 60 percent of automobiles and furniture were also on plans. They were buying faster than their income was expanding. As time went on it was only a matter of time before purchases would slow down, with these purchases slowing down the cutback slapped the whole economy (doc 6). With these new installment plans people were buying more unnecessary expensive things. Like, buying a 35,000 boat instead of the 10,000 when they work the exact same but the 35,000 has a few more details. But because, these people were on installment plans the …show more content…
In (doc 2) John T. Raskob says that if you just invest 15 dollars a month and invest in stocks they will get rich by the end of 20 years. But when the stock crashed everyone that invested lost all their money and life savings.(Doc 3) Is a New York Times article It says “stock prices slump 14,000,000,000 in nationwide stampede to unload; bankers to support the market today.” When the stocks slumped people ran to the bank to pull out their money but the banks also invested in the stocks so people were trying to take out more money then the bank had. (Doc 5) Investors kept buying stock to sell them for more than what they had originally bought to try and get rich quick. But, as the price kept going higher people stopped buying them cause the stocks worth to plummet and being less then what the original person had bought them for. This was the major reason for the great