above, everyone was making money off the market. The 1920s was a time of peace and great prosperity in the United States. Everyone was happy and all were making money. To cope with this dilemma, they drastically cut spending to make payments.
Investors in real estate could not pay their mortgages. The effects of the Great Depression were more severe in America but were felt across all world economies.
However, in late October 1929, the forecasts proved true. The Great depression was a financial decline that started in 1929 and lasted through most of the 1930s. The airflight was becoming widespread and because of these new innovations and technology, the economy benefited (Stock Market Crash,.). The American economy policy in the 1920s was laissez faire and this led to uneven distribution of wealth. Retrieved May 8, 2008. While most people and economists view the stock market crash of 1929 as the cause of the Great Depression, the 1929 stock market crash was a result of a slowing economy. Industrial production declined by 50, show more content, this increased the spending but created debt for the shoppers. The Dow plunged almost 1,000 points in a matter of minutes, as computer algorithms, which accounted for around half of trading volume at the time, stopped offering bids for shares, prompting huge drops. Over nine thousands short school essay on virat kohli failed closed down. Banks repossessed their properties, which were worthless because no one could afford to buy them. There was a significant and constant decrease in spending.
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