USA HISTORY

Detailed explanation-1: -While factory workers may have lost their jobs and savings in the crash, many farmers also lost their homes, due to the thousands of farm foreclosures sought by desperate bankers. Between 1930 and 1935, nearly 750, 000 family farms disappeared through foreclosure or bankruptcy.

Detailed explanation-2: -Many banks closed, ordinary people lost their savings and people lost all hope for the future. People could no longer buy consumer goods like cars and clothes. As a result, workers were made redundant, other workers’ wages were cut and unemployment rose to very high levels.

Detailed explanation-3: -Many people blamed the crash on commercial banks that were too eager to put deposits at risk on the stock market. In 1930, 1, 352 banks held more than $853 million in deposits; in 1931, one year later, 2, 294 banks failed with nearly $1.7 billion in deposits.

Detailed explanation-4: -Unsurprisingly, African American men and women experienced unemployment, and the grinding poverty that followed, at double and triple the rates of their white counterparts. By 1932, unemployment among African Americans reached near 50 percent.

Detailed explanation-5: -Many of the small banks had lent large portions of their assets for stock market speculation and were virtually put out of business overnight when the market crashed. In all, 9, 000 banks failed–taking with them $7 billion in depositors’ assets.