What are the factors that led America into economic crisis?

Even though there was a war going on, the United States of America never faced an economic crisis. European powers continued to take loans from the USA. Soon the United States of America became the new economic power outside Europe as the use of the American dollar was more than British pound according to foreign exchange holding. But this economic growth didn’t last long and in 1929 the world faced an economic crisis.

The factors that led to America into economic crisis are as follows:

• On 24th October 1929, the New York Stock Exchange market Crashed. This day came to be known as 'Black Thursday'. Because of this investors started selling their stocks which led to the large volume of stock trade.

• The prices declined rapidly.

• Both America and European nations affected by the Great Depression. People lost their wealth and also some committed suicide due to the suffering of loss.

• Production rate decreased which increased unemployment.

• This led to the disintegration of world trade.