Causes Of The Great Depression Or New Deal Homework

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Kirsten Kielma Great Depression/New Deal Homework 1. The Great Depression occurred because the citizens of America though that their banks were going under. This thought pushed them into taking out their money from their banks in large amounts. This caused the banking system to collapse. Short lived economic policies were another factor to the Great Depression. Overall the economy of America was not stable. Overproduction occurred in the US which meant that manufacturers made more than the people were willing to purchase. Therefore, the factories started to make less of their products. They fired workers because not as many were needed to make the products. People had to spend their money frugally and a lot of people saved their money.
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