While the economy was booming many people took out loans in hopes for big rewards. Also, a lot of people put their life savings into the stock market. When the stock market crashed, Many people were put into debt, and left with nothing but their clothes
Stock Market Crash!!!
Due to the stock market crash over 3000 banks closed nationwide. All money in banks were lost.
Foreign Trade Tariffs
In order to protect American companies The government passed tariffs on foreign products. Which resulted on Tariffs on American goods, and less products being sold.
After the stock market crashed people and companies weren't able to buy as many products. which caused people to be let off which lead to less products being bought.
Many politicians believed the depression would pass if we let economy take control. TNo politician until FDR tried to help the economy improve
During the Great Depression a long drought hit the west. The extreme drought forces farmers to abandon their crops. The dust storm in the drought killed off live stock and destroyed crops making it impossible to work