0
People were unemployed because of the depression, which was a result of the collapse of the US economy and the severe drought in the midwest which had created the dustbowl.
Throughout the 1920s, it became commonplace for Americans to purchase stock in the stock marketfor a down payment of pennies on the dollar. The result of this practice led to people buying blocks of stock that they did not have the money to pay for. Not unlike the real estate sold to those who could not actually afford it leading to mass mortgage defaults and the collapse of the real estate market 2005-2008. Companies could not operate without the capital generated by the sale of stocks and hundreds of companies shut down putting those employees out of work as well as those in businesses that supported those companies.
At the same time in the midwest, a severe drought coupled with poor farming practices caused the soil to dry out completely so that it could not support crops. Without crops holding the soil in place, huge dust storms were created. Farmers could not earn an income and most defaulted on their mortgages and loans. Since the majority of the midwest population was supported by farming, great armies of people were without homes or jobs.
This period was known as The Great Depression.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What type of unemployment caused changes in the business cycle?
Cyclical unemployment
What were the conditions in Italy in the 1920s?
In the 1920s, Italy was under a fascist regime and the economy was in terrible condition. Much of the population faced hunger, unemployment, and poverty.
What are the causes of unemployment in Cambodia from 2001 to 2008?
Unemployment in Cambodia from 2001 to 2008 was primarily caused by factors such as limited job opportunities, insufficient education and skills training, political instability, and lack of foreign investment. Additionally, a large proportion of the population working in the informal sector contributed to the high unemployment rate during this period.
What is true about slums?
-They are caused by deteriorating neighborhoods -They breed disease -They are fueled by poverty and unemployment
What was the unemployment rate of Tamil Nadu in the years 2008 and 2009?
Unemployment is caused mainly by the increase of population.
What caused unemployment at the end of world war?
demobbing.
What were the living conditions in Germany in the 1920s?
Living conditions in Germany during the 1920s were challenging due to the aftermath of World War I and the economic hardships caused by hyperinflation. Many people struggled with poverty, unemployment, and scarcity of basic necessities. The period was marked by political instability and social unrest, paving the way for the rise of extremist political movements like the Nazis.
What caused unemployment at the end of World War 2?
demobbing.
What caused major economic difficulties in the 1920s?
when the stock market crash
Should companies be responsible for unemployment caused by the information systems Why or why not?
Yes they should be responsible.
In the 1920s the depressed situation of US agriculture was chiefly caused by?
mechanization and overproduction
The farming crisis in the 1920s was caused by a decrease in demand for crops after what?
World War I.
