We Farmers take out loans to farm, only to find that nobody needs it!!
The 1920s, allowed farmers to new machines. To do this farmers took out loans. Farmers produced many crops, to find out that the demand was low. Due to this, farmers couldn't pay back the loans.
Companies, stocks, and businesses, were crashing. This led to unemployment and no money.
Americans started to use credit. They borrowed money, but at the same time, they couldn't pay back the price. The banks was not very trustful. If someone borrowed to much money, and didn't pay back, the bank will shut down.
Due to the crash of stocks, and banks, people couldn't survive. Americans started to create Hoovervilles, or a public area, where people live in homemade shacks.
Even worse, dust storms broke out in the Midwest. Many people who lived in the Midwest moved west, mostly to California.
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