Great depression

« The Great Depression The great depression was a worldwide economic crisis during the 30’s, after the first world war and the victory of the ally, America enter in an economical prosperity and cultural change era known as the roaring 20’s.

The project in paused due to war began to restart, woman enter on the labour market, so more people have a salary to spend. With all this economic boost the bank gives loan more easily.

With all their new money some people don’t know what they can buy.

so the idea of investing is appear because “why be rich when you can be more?” so the stock market began a common practice, the investor find very easy to make money with stocks because so many people buy object like car, washing machine, so investor start to invest with their life savings some of them even take loans to invest more even the banks want a piece of the cake and for that they “borrows” money on the account of their clients. In 1929, the America investment are up 218% since 1922. stock are rising so fast companies have a can’t keeping up and justify their stock price, in the same time production is slowing down people don’t buy thing any more the companies have surestimates their growth so they start to reduces the wages of their employee.

Some companies shut down, so people lose their job and unemployment reaches the highest level in the US.... »