Describe and analyze the causes and consequences of the great depression: how did it happen and how did americans react? in your response, be sure to [1] how overproduction, underconsumption, and the stock market crash of 1929 contributed to the depression; [2] how dust bowl conditions on the southern plains made the depression worse; [3] how widespread unemployment left its mark on the american psyche for decades after the depression was over.

Causes of the Great Depression
- Installment purchasing- Many American families bought luxury goods during the 1920's. Since these families could not pay the upfront costs of the goods, they would use installment plans to buy them. This included putting a little money down and paying off the item over several months or years. However, this system failed because many citizens did not realize that this system actually results in the customer paying more over time in comparison to paying the upfront price.

- Stock Market Crash of 1929- When the prices of stocks crashed in October 1929, millions of Americans lost huge amounts of money. This is because many people invested in stocks, believing that they were a great way to make money.

- Dust Bowl- This drought in the Plains region ruined farmers abilities to make crops. Since the farmers struggled to make crops, they struggled to make money and provide a living for their families.

Effects (Consequences) of Great Depression
- Increased unemployment rate.
-Decreased value of stocks.
- Beginning of relying on government to help citizens during tough economic times.

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