During the 1920s, the stock market soared. Ordinary people saw buying stocks as a safe quick way to get rich. Many ordinary people invested their life savings. Most did not understand the risks of investing. Many investors even borrowed money to buy shares. Then in October that’s when the stock market crash that changed history. The crash sparked a chain reaction. First banks demanded that costumers pay back the money they had to borrow the buy stock. When people could not repay these loans the banks ran short of money. Fearing that banks would close, customers lined up to withdraw their money. Since banks rarely keep enough cash on hand to pay all their customers at once, many banks shut down. The Great Depression was the time of great economic hardship, had begun. As banks failed or cut back on loans to businesses, factories produced fewer goods and there...
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... not return until United States entered World War II in 1941.
After World War I, the price of food began to drop causing some dramatic effects on the United States economy. Americans faced a big impact on the Great Depression that made millions of people lose their jobs and were forced to leave their farm land. Many people, even those who could not afford it, invest all their money in stocks. Some even borrowed money to buy stocks. Prices of farm products fell sharply economic losses were aggravated by a drought. Then republican Hoover who only made things worse leaving Americans homeless and hungry when a leader who promised another way. FDR who over took millions of families lacked food or shelter, who promised immediate action and he kept his word. Roosevelt’s New Deal had three major goals known as Relief Programs, Recovery Programs, and Reform of the economy.
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