2007-11-08 10:10:17 · 4 answers · asked by Anonymous in Arts & Humanities ➔ History
As Derail said, there are many reasons. Supply and Demand being a big one. When people couldn't buy even the most basic things like food and clothes, they stopped shopping. When that happened, businesses were hit hard. They couldn't keep their doors open. Businesses closed, people were let go because of the lack of work which contributed even more to people not having money to spend. The numbers of unemployed increased like wildfire.
2007-11-08 10:33:27 · answer #1 · answered by Split Personality 3 · 1⤊ 0⤋
At that time there was no FDIC. Everyone lost everything they had in their savings. Banks closed. It was a ripple effect. First the people on the bottom lost jobs and then it went higher and higher up the ladder of affulance and only the very wealthy were comfortable during the next 5 or 6 years. Add in the drought that wiped out the Plains states and you have the huge black cloud of dust over that area that finished off the crops that were left.
2007-11-08 10:22:51 · answer #2 · answered by Frosty 7 · 0⤊ 0⤋
There are several reasons. But the biggest is that people no longer had money to buy the things they used to buy. When people don't buy things, the manufacture of goods stops, as well as the services that people used to pay for. No demand for goods and services, no jobs in those areas.
2007-11-08 10:17:02 · answer #3 · answered by Derail 7 · 1⤊ 0⤋
What Derail said... she got it!
2007-11-08 10:23:38 · answer #4 · answered by Mason W 3 · 0⤊ 0⤋