Causes of Great Depression
1. Banks borrowing too much money to people that could not pay it back. As time went on, banks stopped lending and thousands went out of business
2. Too many people borrowing money to use for investments that were too risky. As time went on, heavy in debt.
3. Factories could not borrow money. No demand for products = lay off people who no longer have $$.
4. President Hoover reacted too late & did too little
Effects of Great Depression
1. Unemployment reached 25% of US population.
2. US total production (GNP) went from 104 billion to 56 billion. (A lot less was being made & less work)
3. Income in your pocket was cut in half.
4. Almost 6000 banks closed = lost $$ & no lending
5. Families forced to move in together.
6. Marriage & birth rate declined.
7. HOOVERVILLES: Shacks houses of poor people who lost their homes that sprung up all around the US
8. Malnutrition