0
People spent way too much money on making money in the stock market. you get all of this money going around in a system that depends on the money in circulation to make profits. Someone told somone else that they needed to pull all of their money out. This person was a big shot in the market scene. so he caused all of this panic and everyone pulled out and that caused the market and economy to drop like mad. So I would say that the economic boom of the roaring 20s and the reliance on the Stock Market had a big influence on the depresion.
Wiki User
∙ 11y ago
Wiki User
∙ 13y agoThe unbalanced economy had no stable base to fall back upon. Production far exceeded demand; wealth was unevenly distributed; the boom in stock market prices was based mainly on borrowed money, not real value.
Wiki User
∙ 11y agoPeople had a carefree way of living at this time. Many wanted to get rich quick so they would throw all their money into all the money scandals at this time, including the pyramid scheme and the stock market scandal, which would end up in them actually losing their money. They would also spend money that they didn't have by buying cars and such on credit, thus going into debt.
Wiki User
∙ 14y agoit caused a shortage of jobs and a great amount of unemployed people
Add your answer:
Earn +20 pts
What brought the us economy out of the great depression what brought the u.s. economy out of the great depression?
Mainly, it was World War II.
Was the Great Depression in England?
When the great depression hit Britain, its economy flopped badly because they had no money to manufacture any more iron, steel, textile, etc. The value of pounds dropped that it wasnt worth the price of gold anymore. The economy of Britain couldnt lend out loans to other countries anymore and they couldnt continue their trade with their main trader Germany.
Which of these did not rise during the Great Depression?
consumerism
What was a mission as it applies to the great depression?
For the economy to regain its power.
What was the main cause to the start of the Great Depression?
The main cause to the start of the great depression was the Wall Street Crash in 1929.
What brought the us economy out of the great depression what brought the u.s. economy out of the great depression?
Mainly, it was World War II.
Was the Great Depression in England?
When the great depression hit Britain, its economy flopped badly because they had no money to manufacture any more iron, steel, textile, etc. The value of pounds dropped that it wasnt worth the price of gold anymore. The economy of Britain couldnt lend out loans to other countries anymore and they couldnt continue their trade with their main trader Germany.
What did not increase during Great Depression?
the economy
What is the difference with the economy today and the economy during the Great depression?
It lays eggs.
What was the economy like during The Great Depression?
bad
Which of these did not rise during the Great Depression?
consumerism
Was the economy stable in the 1930s?
No that was the Great Depression era.
What period did the US economy collapse?
The Great Depression
What came first Great Depression or world war you?
WWI was a major cause of the Great Depression.
What was the main cause of the main cause of the great depression?
The main cause to the start of the great depression was the Wall Street Crash in 1929.
What was a mission as it applies to the great depression?
For the economy to regain its power.
What was the main cause to the start of the Great Depression?
The main cause to the start of the great depression was the Wall Street Crash in 1929.
