Is nancy drew video game license public domain
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In particular, Germany was still suffering from the effects of World War I and the crippling war reparations they owed to other countries. The Great Depression was a world-wide event because world economies are interconnected, and when one nation suffers severely, it affects others. To put it in one sentence, problems were caused by bad business and banking practices, and the way people reacted to these problems made the whole situation much worse.) (There were other forces at work during the Great Depression, and the issue of what caused it is pretty complex, but that’s the short explanation and gives you an idea of what was happening around that time. People panicked and tried to withdraw their money from banks, forcing banks to liquidate their assets and causing more bank failures. These elements turned into a self-perpetuating cycle because unemployed people have no money to spend, leading to further decreased consumer spending and even more lay-offs. Decreases in consumer spending and weaknesses in the banking industry caused companies to lay off their workers and banks to fail. Worse still, many people soon found themselves unemployed.
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However, the stock market crash didn’t cause the Great Depression by itself. When the stock market crashed, these borrowing investors found themselves in severe debt, having lost everything that they had invested. Basically, they had hoped to make a profit on their investment and repay their loans with money to spare, but that’s not the way the situation worked out, and having large numbers of people engaging in this behavior was a catastrophe.
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Many ordinary people had invested money in the stock market, and when they didn’t have money to invest, they borrowed money to invest. Up until the crash of the stock market, many American businesses and individuals had made careless financial decisions without considering the wider impact that they would have in the long term. Following the stock market crash on October 29, 1929, many people were out of work. The 1930s was the decade of the Great Depression.