20th Century Transformations: Economic Crisis and Political Change
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The Great Depression: Causes and Impact
At the end of the 1920s, a series of problems in the US caused a major economic crisis, known as the Great Depression. This crisis lasted until the end of the 1930s and brought an end to the prosperous, consumer lifestyle of the previous decade.
Problems Leading to the Crisis:
- Overproduction: American industry produced more goods than the population needed. When companies could not sell their products, they went bankrupt and had to close.
- Falling Consumption: When companies closed down, people lost their jobs and stopped spending money. Rising unemployment reduced demand for consumer goods and the raw materials used to make them, leading to more companies going out of business.
- The Wall Street Crash: When