The Great Depression lasted over ten years devastating the world! The stock market crash, also known as “Black Tuesday”, made people scared. A couple days later, the economy crashed, too. Everybody rushed to the bank to get their money out, but the bank didn’t have enough cash. Just like everybody, the banks had invested a lot of its money in stocks. Many of banks closed. In the USA, 25% of the population lost their jobs.
Now let’s get to the real question. How did The Great Depression start?
After World War I, the economy was booming! People took loans that they couldn’t pay back. No one cared. It was “The Roarin’ Twenties!” People bought new gadgets like washing machines and radios. They also bought stocks in companies. The prices got higher and higher as they were sold from man to man. People couldn’t pay back their loans, so the economy and the stock market crashed.
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