The correct answers to these open questions are the following.
1.- Explain why America went into an economic depression after 1929.
The United States lived the harshest economic crisis of all its history after the United States stock market crash of October 29, 1929. After the crash, millions of American people lost their jobs, banks went under bankruptcy, and companies broke. It was a disaster. President Hoover did not want to help teh American people with any special program or legislation.
2.- Explain how the factors which produced prosperity could lead to depression.
What happened was that the United States lived a prosperous time called the "Roaring 1920s" at the beginning of the decade. People started to spend on necessary and unnecessary things such as homes, cars, electro domestics, and more. The problem was that most purchases were made on credit, generating a deep dent that became insurmountable.
On the other hand, investors in the US stock market were in debt too and when stocks crashed, a crisis followed.
<span>June 28, 1914, Sarajevo, Bosnia and Herzegovina</span>
<span>The first nation to build its economy on capitalism was the Netherlands, since it was in fact the Dutch who created the first stock company, in which people could buy shares of companies. </span>
This condition is now as physical dependence.
