The Great Depression READING PART 1.docx - The Great...

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The Great Depression During the 1920s, the United States entered a period of economic prosperity and technological advances in the areas of transportation, communication, electrification, and the arts. These good times concealed, or hid problems in the American economic system and attitudes about the role of government in controlling the economy. The country was about to enter a time of little money and little economic growth. This era, called the Great Depression, would last into the 1930s and have a widespread and severe impact on American life. Economists have argued for years about the causes of the Great Depression. However, three factors played a significant role. The first factor was the stock market crash in late October of 1929. The stock market is a place where people can buy shares or stocks of companies. By buying stocks, a person is actually buying a small piece of a company. During the 1920s, the economy was healthy and many Americans were investing and making money in the stock market. In time, people became overconfident in the market. They began to borrow money to buy more and more stocks in the hopes of making bigger profits when they sold the stocks.
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