America was making a lot of money and manufacturing a ton of goods. The worldwide economy depended on America's economy.
I want my land and my money back!
American industries overproduced on goods because they did not realize that consumers stopped buying them because they already have for example aa fridge, customers do not need more than one fridge. This overproduction caused a crash in the market and people lost many jobs.
I cannot believe I just lost my job, now there is no one to support my family!
Stock prices were quickly dropping since the demand on goods dropped and they overproduced. Investors quickly decided that they could no longer profit on stocks since they had dropped so low and they panic sold the stock at absurdly low prices to liquidate their shares.
Everything seems alive again!
Banks no longer had money to pay people. About 9 million people lost all of the money in their saving accounts. The farmers who worked on lands lost their land when they could not pay their mortgage and the prices on everything had dropped drastically.
Unemployment reached very high numbers, in 1933 1/4 of all Americans no longer had jobs. Trade decreased drastically around the world. World imports dropped more than fifty percent.
President Roosevelt started the New Deal which helped provide jobs. Financial help was given to farms and busniesses. New rules and regulations were created to help fix the stock market and banks. Government spending would help make jobs and begin the recovery.