Black Tuesday Effects

The Roaring Twenties is known as a time of prosperity due to consumerism and mass-production from the years 1920 to 1929. This era in American history could be considered one of the most excessive times to date. Because of the United States’ triumph in World War I, the country had its first involvement of being a world power. The increase of consumer goods greatly impacted the U.S. economy during this time of success. Also, the start of the airline industry along with the expansion of automobile manufacturers helped profit banks. Several Americans became dependent on the newly developed methods of payment, which eventually became the American standard way of living. The quest to achieve this ideal lifestyle also known as the American Dream led to a severe shift in the nation’s economy. Through both fiscal and monetary policy along with laissez-faire tactics, the Roaring Twenties ended with the 1929 Wall Street Crash, which was the precursor to the worst economic decline in history, The Great Depression.

The Roaring Twenties had come about from the wealth that people had and the influence of all the modern creations, including jazz music, new dance crazes, movies, cars, new technologies and mass production. Some Americans found the Roaring Twenties to be a time of prosperity, confidence and fun; but for much of the population around the world it was anything but this. These people suffered poverty and discrimination and eventually the few that were having the time of their life ended up in poverty as well. In the mid-1920s problems started to develop in the world economy, and when the New York Stock Exchange collapsed in October 1929 things started to go downhill. As prices continued to fall, panicking investors sold all of their shares.

Families had to split up in search for work and many children got jobs to make extra money for their families. In 1933, when Roosevelt took office, “24.9% of the total workforce or 12,830,000 people were unemployed” according to the FDR Library. This statistic shows just how much the average American was struggling to keep themselves and their families afloat. The FDR Library also states that “drastic drops in farm commodity prices resulted in farmers losing their lands and homes due to foreclosure” and that “gangs of unemployed youth, whose families could no longer support them, rode the rails as hobos in search of work.” The previous excerpts depict America’s loss of stability because the people providing food were out of jobs and parents had to send their children away since they could not afford to care for them any further. Thankfully, President Roosevelt and his administration stepped in soon afterward to correct the

The 1920s were called the roaring 20s for a reason, the us economy was roaring. We had a booming stock market, and the atmosphere for the most part was fun, and enjoyable. But on October 29 1929(Black Tuesday), that all changed. The stock market crashed, losing the US over 14 billion dollars in stocks. As we went into the 30s it got worse, at the time then current president Herbert Hoover attempted to bring the U.S. out of the depression, but failed and was blamed for it. In 1932 Franklin Delano Roosevelt (FDR) was elected and he quickly implemented the New Deal creating programs that brought us out of the depression.

It is often said (perhaps even to the point of exhaustion) that history is significant because if we are to reflect on historical events we must realize past mistakes and learn from them. The 1930s may have followed the 1920s but it could not have been more different and there are many explanations for this. The disastrous recession of the 1930s was caused by more than just one factor, and the less than sustainable ways of living in the 1920s are a testimony to why the economy crashed. Although some might consider the rise and fall of national prosperity in the 1920s and 30s to be an issue only pertaining to the past, there have been similar problems repeated since. By examining the contrast between these two decades, we as consumers can educate ourselves on the importance of a stable economy, and then make rational decisions about how we can contribute to the economy; like when we should be spending, saving, and investing. The bust of the economy in 1929 was an example of the failures of indulging in a purely capitalist society, which is often overlooked by modern economists analyzing the Great Depression.

During the 1920’s, a period of exciting change occurred in America. It was a decade where America saw a shift toward business expansion and economy prosperity that was driven by recovery from wartime devastation. This was a time where Americans were living the American dream. The 1920’s is also referred to as “the roaring 1920s” because it was the first time in American history that people could afford to buy in abundance and buy anything they pleased. The production of the Model T’s, Baseball, Fashion and Prohibition affected the 1920s; Americans were learning how to live the life. The Roaring Twenties was a decade of great economic growth and widespread prosperity; however this led to a decade of great depression.

This only deteriorated as businesses would suffer financially and unemployment was at an all the time high. Although President Franklin D. Roosevelt came up with tactics and strategies to lessen the effects of the damage done, the economy wouldn’t fully overcome until after 1939 as World War II shifted America. For a little over a decade, businesses would go through financial turmoil and people would have to find other ways to bring in revenue. During the late summer of the 1929, the American economy entered into a recession. According to the Merriam-Webster Dictionary, a recession is defined as a period of reduced economic activity. Investors had traded some 16 million shares on the New York Stock Exchange in a single day. That day in history was formally known as “Black Tuesday”. Those same shares had ended up being worthless with no monetary value. The investors who bought them with borrowed money, suffered an excessive lost. Consumer reliability was gone as spending was nonexistent which resulted in factories being closed down. The lack of consumerism also impacted those who had invested in mass production. The consumers who still felt a need to spend, were forced to use credit cards and evidently fell into major debt; foreclosures on homes and repossessions climbed rapidly as people tried their best to live again and have that

The 1920s seemed to promise a future of a new and wonderful way of life for America and its citizens . Modern science, evolving cultural norms, industrialization, and even jazz music heralded exciting opportunities and a future that only pointed up toward a better life. However, cracks in the facade started to show, and beginning with the stock market crash of 1929 the wealth of the country, and with it the hopes and expectations of its people, began to slip away. The Great Depression left a quarter of the population unemployed and much of the rest destitute and uncertain of what the future held. Wealth vanished, people took their money out of banks, and plans were put on hold. The most significant way in which the Great Depression affected Americans’ everyday lives was through poverty because it tore relationships apart and damaged the spirit of society while unexpectedly bringing families together in unity.

America had been a generally conservative nation with a population that avoided personal debt. However, this would all change during the decade known as “The Roaring Twenties.” This prosperous period embodied huge changes in the general lifestyle and culture of the American people as they embraced consumerism. However, during the 1920s the economy also faced numerous unfortunate events and unstable practices that would lead to one of the world’s worst economic crashes. There were many reasons for the economic downfall, including mass production and consumerism, excess credit and ‘playing’ the stock market, which led to the stock market crash in 1929.

Black Thursday only caused people to feel one emotion: devastation. The stock market crash created a long lasting domino effect in effectively paralyzing the U.S. Although, only a low percentage of Americans bought stocks, the crash produced an earthquake within the U.S. economy, shaking the heart and spirits of all the hard workers trying to make a living.

“The Roaring Twenties” stock market was more bull market than a bear market by a landslide. In this occasion people were “buying on credit” instead of paying up front. People were led to believe that the stocks were more profitable than what they actually were. This misconception came to a disruptive halt on Tuesday, October, 29, 1929 which is known as Black Tuesday when the stock market crashed. The stock market crashed and stock brokers could not pay off their loans they owed to the banks. So there were huge losses that caused businesses and banks to close down. And the people entered the Great Depression.

The Great Depression was an overwhelming time for Americans. To this day, it is known as the worst economic crisis in US history. Because the 1920’s were such a happy time, the depression was shocking. Intensified by the proceeding era, life seemed to be over in the United States as the citizens suddenly no longer had the means to survive comfortably. Although prosperous in the 1920’s, the following decade was much duller after the Stock Market Crash of 1929 changed America for the worse; escaping the Great Depression proved difficult, but feasible with time.

The roaring twenties was a time filled with hope and change. President Warren G. Harding promised a “return to normalcy”, which reflected his own conservative values and the voters’ wants for stability and order. Americans felt that they had been through more than enough, and desired prosperity. During the years 1919 and 1920 the Eighteenth and Nineteenth Amendments were passed; the outlaw of alcoholic beverages and the right for women to vote, which ones of the many reasons society was turning their backs on Progressivism. Republicans were beginning to return to their previous dominance. The 1920’s was an economic boom for America, including everything from an increase in jobs, a rise in plentiful goods, new consumer products, and the reduction of taxes. The country was filled with jazz music, dance, and what appeared to be a brighter future. The 1929 crash of stock market was the beginning of a downward spiral leading in to the Great Depression. The stock market crash is often to be confused as the cause of the Great Depression, although that is false. A few of the issues that lead to the Great Depression included; farming (which decreased in demand as farms increased through the states during World War I), banking, and mass unemployment. Capitalism took shape as what was once the individualistic Protestant work ethic was reshaped into industrial work on a grand scale. Each worker contributed to the greater good, and the workers were presided over by a boss

The 1920’s in America were known as the “Roaring Twenties.” Americans could all live a life of luxury. Technological advances and new inventions were improving the quality of life in every home. Working class Americans were able to enjoy automobiles, telephones, and new appliances. Banks began to finance these new lavish commodities to citizens using installment plans. No one was deprived the right of living the American dream. However, excessive borrowing, stock speculation, greed, and manipulation would tumble America into the Great Depression which would last for nearly a decade. On October 29th, 1929 Black Tuesday caught up with the recklessness of Wall Street and billions were lost.

We already know that the "Black Friday" is an American tradition that consists of a drop in prices in major stores, during the last Friday of November, coinciding with the opening of Christmas shopping. But what is the origin of this celebration?