I try to learn more in depth about topics that interest me. I was reading about the Great Depression, but it is so hard to understand for me what exactly cause it, as I read it, it feels like a mix of fancy words that don’t tell me much (likely due to my lack of knowledge and english not being my 1st language). So, could anyone explain me in simple words what exactly cause the Great Depression?
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The economy was based on the average person buying lots of stuff. But the average person didn’t have lots of money to buy lots of stuff after some time. So banks gave them loans. After a few years banks crashed and people couldn’t buy stuff anymore due to not getting loans. Worse even: they had to pay the prior loans .
In the end people lost their jobs because factories couldn’t afford them because nobody bought their goods. Which led to less purchasing power, meaning less people could buy stuff, so factories lost even more revenue and had to fire even more people.
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