The depression was caused by a number of serious flaws in the economy. The U.S. Economy expanded swiftly between 1920 and 1929, a duration dubbed “the Roaring Twenties”, the rich made huge incomes, however increasingly more Americans spent greater than they earned, and farmers confronted with low prices and heavy debt. The lingering consequences of World War I (1914-1918) hastened financial issues in many nations, as Europe struggled to pay battle debts and reparations. The stock marketplace, targeted at the New York Stock Exchange on Wall Street in New York City, turned into the scene of reckless speculation, wherein all and sundry from millionaire tycoons to cooks and janitors poured their savings into shares. During the 1920s, the U.S. Stock …show more content…
Nonetheless, stock prices endured to upward thrust, and by way of the autumn of that year had reached stratospheric tiers that couldn't be justified with the aid of predicted future income. Faced with this catastrophe, households split up or migrated from their houses on the lookout for work. 'Hoovervilles' (named after President Hoover, as an insult), shanty cities built of packing crates, abandoned cars sprung up across the Nation. Gangs of youths, whose families couldn't afford them, rode the rails in field motors like so many hobos, hoping to find a job. 'Okies', sufferers of the drought and dust storms inside the Great Plains, left their farms and headed for California, the new land of "milk and honey" in which they believed all one needed to do was reach out and pluck food from the timber. America's unemployed had been on the pass, but there has been actually nowhere to move. Industry was badly shaken by using the Depression. Factories closed; mills and mines were abandoned; fortunes were lost. American enterprises and the workforce were both in an extreme