The greatest stock market crash in the history of the United States. It happened in the New York Stock Exchange on Tuesday October 29, 1929, now known as Black Tuesday. Bank failures followed, resulting in businesses closing, which started the Great Depression.
Excessive use of Credit
Black Tuesday refers to October 29, 1929, when panicked sellers traded nearly 16 million shares on the New York Stock Exchange
Over production of consumer goods
overproduction, high debt, and low prices since the end of WWI meant that many farmers never shared in the prosperity of the 20s
Uneven distribution of income
People during the Roaring Twenties became fascinated with the idea of using credit to pay for what they brought. This lead to people spending more than what they could afford which left them with a lot of debt to pay off.
Again, during the 20's, the over production of consumer goods became an issue. Factories were able to produce more product in a shorter period of time. This made products easier to attain and the scarcity that there was before, vanished.
A popular theory as to what might have caused the Great Depression was that in the 1920's there was an unequal distribution of income between the rich and the middle or poor