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CHAPTER 1
The Great
Depression
Few Americans could have imagined the depth of suffering they
would soon feel when entering the new decade. The market crash
of 1929 sent the economy reeling. But that wasn’t the worst of it.
A total of 650 banks went out of business in 1929, and the total
number more than doubled the following year. Many people lost
all the money they had saved. Fewer banks meant less money was
being borrowed because there was a limited amount of money
being supplied. This led to a dramatic decrease in the price of
services and goods, also known as a deflation. It also meant that
people were no longer able to buy using credit since there were
fewer banks able to issue credit. Americans were still reeling from
6 6 [ 21st century skills library ]
