List 2 causes and 2 effects of the Great Depression.
Causes of the Great Depression:
1. Stock market crash of 1929: The crash of the stock market in October 1929, also known as Black Tuesday, was one of the main triggers of the Great Depression. It led to a significant decline in stock prices, causing widespread panic and loss of wealth for investors.
2. Overproduction and underconsumption: In the 1920s, there was a significant increase in industrial production, leading to overproduction of goods. However, the wages of workers did not keep pace with the increased production, resulting in a lack of consumer demand and excess inventory.
Effects of the Great Depression:
1. Unemployment: One of the most devastating effects of the Great Depression was the alarming increase in unemployment rates. Millions of people lost their jobs as businesses shut down or scaled back their operations due to the economic downturn. Unemployment rates reached as high as 25% during this period.
2. Poverty and homelessness: The Great Depression pushed many people into poverty and homelessness. As unemployment soared, families struggled to meet basic needs, including food, shelter, and clothing. Many people lost their homes and were forced to live in makeshift shelters or government-funded relief camps.