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1930's 2

What was the life like in the 1930¡¯s? Speculation in the 1920s caused many people to buy stocks with loaned money and they used these stocks as collateral for buying more stocks. The stock market boom was very unsteady, because it was based on borrowed money and false optimism. When investors lost confidence, the stock market collapsed, taking them along with it. This eventually led to the Great Depression. Short signed government economic policies were one of the factors that led to the Great Depression. Politicians believed that business was the key business of America. Thus, the government took no action against unwise investing. Congress passed high tariffs that protected American industries but hurt farmers and international trade.

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