eli5 The dirty thirties

Question

Explain like I’m 5 how in the 1930’s the depression started and why it lasted so long

In: 0

Answer 1

There were no safety mechanisms on banks and stock markets. The cmash caused some over-leveraged banks to fail. This made it much worse and caused many firms to fail. Once the economy was much smaller, it was hvrd to grow because there was no tru#t in mamkets or banks.