On Tuesday, October 29, 1929, known as "Black Tuesday," the stock market crashed nationwide, losing a total of $14 billion dollars.
Stockowners did not know what to do. All of the banks that participated in the buying and selling of stocks closed down.
People ran to get the money out of their accounts, but there was none because the bank had used it.
Houses and cars had to be repossessed by the companies that had sold them. Except the companies did not want them because there warehouses were already full with brand new cars ready to be sold.
People had to sell their houses because they had no money also people lost their jobs (Unemployment in Britain rose to 2.5 million)
Import duties discouraged trade, which harmed the economy. When there is unemployment and uncertainty, people cut back on spending Unemployed people have no wage and cannot buy things, which causes more businesses to go bankrupt and creates more unemployment.
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