The great depression began in 1929 and ended in 1939 lasting 10 years. This was a time in the united states where the economy went down causing many people to lose their money and their property. The great depression was caused by various things like the dust bowl, when the stock market crashed, overproduction, and underconsumption. These causes played a major role in the Great Depression. The stock market crashed on October 28, 1929. When the stock market crashed numerous americans took their money out of the banks causing a variety of banks to close down because of it closing many people lost a lot of money and homes. When people had loans and couldn't sell their stock many had to sell their homes, furniture, and cars to pay their debts causing many to be homeless. Many companies that invested their earnings in the stock lost everything resulting in to close down their doors. After the stock market crashed everything went downhill. In the 1920 most american factories used the technique of the assembly-line production. Therefore, they were able to produce more goods quicker than before. When people commence this there weren’t enough customers to buy all of the product creating overproduction. Overproduction is a situation in which more goods are being produced than people …show more content…
The wealthy were also not buying anything that they didn’t need so they wouldn’t go through poverty. The economy was going through underconsumption. Underconsumption is when people are purchasing fewer goods than the economy is producing. The first people to experience underconsumption was the farmers because it caused them to go further into debt. Although, farmers were going through debt they still borrowed so they can buy cars, tractors, and more causing them to have difficulties paying their bills. By late 1920s underconsumption spread everywhere and because of this farmers began cutting back on