Though, Georgia, a predominantly rural state, was already suffering from a depression due to the boll weevil and drought, the economic boom experienced by the rest of the United States ended with the Stock Market Crash of 1929. In this downturn, stock-holders lost over 40 billion dollars, and businesses were never able to recover from these losses throughout the 1930’s. However, a series of other factors led to the continuation of a world-wide depression for almost a decade.

Some of the other economic factors that led to the Great Depression were:
 

Bank Failure: lack of government regulation of major industries. There was (x) no insurance protecting deposits so if (y) too many people decided to withdraw their money, the banks would run out. This was bank failure and resulted in the (z) Stock Market Crash.

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Reduction in Purchasing: Significant reduction in consumer spending. After the stock market crash, 1. people had no money so they stopped buying goods. 2. Because people stopped buying goods, companies stopped producing as much. 3. Because companies weren’t producing as much, they didn’t need that many people working 4. Many people lost their jobs and unemployment rose to 25%.

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Overproduction of Agriculture Products: Before the droughts, 1. farmers were over-producing agricultural products which led to 2. drop in prices and slim profit for farmers. 3. They burned their crops to raise prices. 4. Then the droughts hit, 5. they had no money and 6. couldn’t buy or grow any food.