The Panic of 1893 was a serious economic depression in the United States that began due to railroad overbuilding and shaky railroad financing which set off a series of bank failures.
Imagine if you built too many roads without considering whether they were needed or financially viable. Eventually, you'd run out of money and resources causing chaos - this is similar to what happened during the Panic of 1893 with railroads.
Overproduction: This occurs when more goods are produced than can be consumed. Overproduction in various industries contributed significantly to the Panic.
Bank Run: A bank run happens when many customers withdraw their deposits simultaneously over concerns about the bank's solvency. During panic times like these, bank runs are common.
Railroad Industry: This was a major industry during the 19th century and its overexpansion played a significant role in causing the Panic of 1893.
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