There are several factors that contributed in the outcome of the great depression. However, the main causes of the Great Depression were the unequal distribution of wealth throughout the 1920’s and 30’s, and the extensive stock market crash in the 1920’s. There were other factors as well such as structural weaknesses and the fact that almost all of the other countries were affected as well. The period after the depression was the longest and worst period of high unemployment and low business activity. Banks, stores, and factories were closed down and left millions of Americans jobless, homeless, and left with no money. Many people depended on the government or charity to provide them with food. The economy continued to fall almost every month.
But however, by 1929 the market became the symbol of the nation's prosperity and an icon of American business culture. Everything was going great; the stock prices reached what looked to be a permanently high plateau. In September of that year the market began to slide, but people ignored the sign. But on October 29, 1929, "Black Tuesday", the stock market took a huge fall. More than 16 million shares changed hands in frantic trading. Investors soon realized they were heavily in debt so they started to sell their stocks, which led to others doing the same. That was the start of all the panic, everyone started selling but most of them couldn't find buyers. The impact of "Black Tuesday" led to bank failures because speculators who had borrowed from banks to buy their stocks could not repay the loans because they could not sell their stocks. This was the main start of the depression, because it not only wiped out the savings of thousands of Americans, it hurt commercial banks that had invested in the corporate stocks. Many of the middle class people lost their life savings and had no other way to cope with the crisis. Money was distributed disparately between the rich and the middle-class, between industry and agriculture...