Business & Finance
The Great Depression

Why did businesses close during the Great Depression?

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Answered 2014-07-02 19:33:37

Businesses closed during the Great Depression because they weren't realizing the revenue the needed to remain operational. During this time people weren't working so they couldn't spend money they didn't have.

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Related Questions

What day did the banks close during the Great Depression?

what did so many banks close during the great depression

Did school close down during the Great Depression?


Why did many businesses close in the 1930s?

many busnissess closed in the 1930s because of the great depression

What happened to banks and businesses in the economic collapse during the great depression?

Many businesses and banks were forced to close during the economic collapse. The number of business failures were very high and the total number of banks fell by about one third during five years, either through merger, failure, or voluntary liquidation.

What was family life life during the depression?

The family life during the Great Depression wasn't all that close and when we say that we mean that they werent always together and when a family member died during the Great Depression they had to keep on walking and leave their dead bodies behind.

Why did the banks close during the Great Depression?

The banks closed during the Great Depression simply because they ran out or nearly ran out of money. Later deposits made in banks were guaranteed by the federal government.

What were the effects on Singapore of the Great Depression?

geylang had to close down

What caused banks to close during the Great Depression?

Banks were forced to close during the Great Depression as there was a frantic run of customers withdrawing their money. Such was the run that the banks didn't have the actual money in their vaults. Much of the customers' money was on paper, loaned out to other banks, companies, etc. Banks also invested some of their customers' money in stocks and shares.

What happened to banks and businesses in the economic collapse?

Many businesses and banks were forced to close during the economic collapse.

How did the Great Depression happen?

The Great Depression happened because many of the businesses of the 1920's and 30's stocks were growing at an alarmingly fast rate. And soon the stocks were worth more then the companies themselves. And so many people lost tons of money that they didn't have. And they didn't have the money because they bought the stocks on what we call " credit" today..... And then businesses closed which caused banks to close and so on.

When did the Great Depression 2 start?

There was no 2nd Great Depression. Many thought the Great Recession would be a great depression but that was not the case. In reality, the economy was not even close to another great depression. The great depression included such things as wage fixing and pricing fixing by the government, excess public debt from WW1, Smoot-Hawley act, etc. The Great Recession was just a financial breakdown, which is bad, but not a GD.

What were some of Franklin D Roosevelt Contributions?

He made Americans comfortable through the Great depression. He helped the banks during the great depression by making a national holiday where all the banks had to close down for four days and could ony re-open if they passed inspection.

Why is the great depression important?

History caused businesses houses to close down of not allow employment, factories shut down an banks failed,farms income fell down to 50 percent and by 1932 approximately were unemployed.

What were Franklin D Roosevelt's biggest contributions to American Society?

was that he helped the banks during the Great Depression by making a national holiday where all the banks had close down for four days.

Are you close to another depression?

In 2011, CNN conducted a poll that showed that 50% of Americans believe the U.S. is headed for another Great Depression. The lack of usual resilience for economic stresses has made many people believe that America is headed for another Great Depression.

How did the great depression affect the world's economy?

the factory where close but the men that work on the job fail to complete the economy

What technique did Dorothea Lange use in Migrant Mother Nipomo Valley to focus the viewer's attention on the suffering of migrant workers during the Great Depression?

The close-cropped figures bring a sense of immediacy to the image.

Why was the Great Depression felt most severely on the Prairies?

The great depression was felt most severely on the prairies because they didn't have much stuff around them they either went out and got what they needed from the town close to them or they had someone bring it up and they would be paid but since the great depression everything in the towns were goin down and the people in the prairies couldn't get anything.

Is recession the same thing as depression?

no, but close, It's right Above a depression

What was the immediate economic impact of the Great Depression on the lives of average Americans in the cities?

The economic impact of the Great Depression had a very direct impact on average urban Americans. First of all, a lot of businesses had to close their doors, so many people found themselves out of work with no immediate prospects. Many who believed they would never accept welfare, had no choice but to sign up for the program. Many were going hungry, and as a result soup kitchens were opened.

What was the relationship between George and Lenny in of mice and men?

They were very close and that was uncommon during the Great Depression. The only reason George kept Lennie was because of Aunt Clara and he felt company. However, they relationship was unique and they were both grateful for it.

When do most french businesses and shops close?

On a Monday

Do schools and businesses close in Italy when there is a soccer game?

No, they do not.

What is the timespan in To Kill a Mockingbird?

About 3 years. When the book begins Jem is almost 10. By the end of the story we see Jem close to entering his teenage years as he is almost 13. The book is roughly set between 1933 and 1936 during the Great Depression.

How were friends during the Great Depression?

Friendship was difficult to have because it was extremely easy to loose those that were close to you and most people didn't want to risk the pain of a broken heart when they lost someone. To prevent this most people isolated themselves from others and their lives.

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