Cause: Causes of Great Depression Spreads to the US
Cause: The Roaring 20's
WWI caused a high cost of rebuilding because of the devastation of war and battle. This also caused more debt for many European countries. Many soldiers out of jobs because they left their jobs to battle in way and laid off workers, and unemployment rose.
Cause: Stock Margin
European now is stopping trades and that means no more trading with the US but, The US still produced high volume good, but because of the new credit system the economy fell drastically because of the production of the high colume goods.
Event: The Stock Market Crash
The new concept of Credit is now out and people are spending a lot of money on the new things like cars, clothes, and accessories. Many people were also into Dancing, Flappers, and Drinking during those times. The Credit also caused debt because now the people paying credit don't have a way of paying it back which was a major cause in the great depression.
Effect: The Stock Decline
Many people were buying stock in margin and would have to pay the money total amount but a little later but, when the stock market dropped, the amount of money people had to pay went down. This caused many businesses to go out or take down their store in certain areas and many people were now out of jobs.
On October 29, 1929 the Stock Market Crashed otherwise known as Black Tuesday. Many people were rushing to get their money from banks but banks were out of money. This means that people lost everything and now weren't able to provide for themselves or families.
When the Stock Market crashed the worth of stock went with it. The large decline in Stock made it worthless. Those who bought stock margin now weren't able to pay and The Investors were now average broke people.