The Stock Market Crash and The Great Depression in the US

There are primarily two theories as to why the stock market crashed in 1929, affecting innumerable people in the United States and around the world. One speculation to how the devastating catastrophe transpired is driven by the idea that there was an over-production of goods and services and an underconsumption by the people, creating a plummeting bubble; consumers held on to their money and stopped investing, hoping that the market would stabilize. Another common conjecture is the belief that the Great Depression was provoked simply by normal recession, within the business cycle, and was brought about by poor policy on the behalf of the Federal Reserve. Many believe the crash was frankly unavoidable because of the unprecedented combination

The stock market crash of 1929, additionally called the Great Crash, was a sharp decrease in U.S. stock exchange values in 1929 that added to the Great Depression of the 1930s. The market accident was a consequence of various economic imbalances and structural failings (Pettinger). In the 1920s, there was a fast development in bank credit and advances. Energized by the quality of the economy, individuals felt the share

The Great Depression was a time of great economic tragedy during the 1930’s. October 24, 1929 was the day of the stock market crash, causing economical shortage everywhere, even globally, and this scared everyone, including the rich. This day was/ is known as “Black Thursday”, where over 2.9 million shares were traded. On “Black Tuesday”, five days later, more than 16 million more shares were traded in another wave of panic. Many investors then lost confidence in their banks and demanded deposits in cash which forced the banks to liquidate loans in order to supplement their on hand cash reserves. By 1933, around 15 million Americans were unemployed and nearly half of the country’s banks had failed. This stopped Americans from purchasing which then led to less production of goods and decreased the amount of needed human labor. In the end, millions of shares ended up worthless, and those investors who had bought stocks with borrowed money were wiped out completely.

$40 billion was wiped off the value of US shares by the end of December 1929. Most business owners, shareholders and stockbrokers lost everything and millions of people lost their jobs. The world was plunged into its worst disaster since World War I. For many people this time or The Great Depression was worse than the

The Great Depression is the “deepest and longest-lasting economic downturn in the history of the Western industrialized world,” that had occurred until that day. In 1932, stocks were only worth about 20 percent of their value than in the summer of 1929. The Stock Market Crash of 1929 was not the lone cause of the Great Depression, but it played a major impact in the collapse of the economy. History.Com stated that by 1933, approximately half of the banks in America had failed, unemployment had risen to 30% of the workforce.”

In fact, it was called the Roaring 20’s. The United States prospered during these times- assembly lines provided more manufacturing jobs available, wages increased by twenty-two percent and some owners like Henry Ford started paying the workers extremely well. The stock market had become a huge part of the economy. How could anything go wrong, right? Well, here’s how- the boom in the stock market caused people to buy on margin. But then, one ripple in the stocks caused confidence in americans to fall. On Monday, October 28, 1929, everyone tried to sell their share of stocks. The following day, Tuesday, October 29, 1929, everything crashed. This day became known as ‘Black Tuesday.’ This was the cause of the deepest and longest-lasting economic downturns in American history, which is now known as the Great Depression. There were two main reasons why the stock market crash occurred: overproduction and high import tariffs worldwide. This caused everything to crash. Banks closed due to their own speculation in the market, companies went out of business, and unemployment shot through the roof, rising to twenty five

In October 27, 1929, the United States stock market crashed and created a ripple effect of unfortunate events. This economic downfall that the U.S. economy faced was one never experienced by American citizens. The crash immediately stunned Wall Street and wiped out millions of investors. As the years passed the Great Depression only worsened. No one knew how to react to this situation and fear began to over run the country.

The stock market crash not only sent employment rates to plummet, but even sent production rates down. This forced millions of families to the streets (“Facts about the Depression”). By 1930, four million Americans looking for work could not find it. Citizens were forced to buy on credit, but fell into debt because they could not find the money to pay it back. The economic downfall even lead the US treasury to not be able to retain the money needed to pay their government workers. Seeing what was happening to the country and its economy, the nation ran to any bank they could find and tried to withdraw their savings. With the amount of bank runs, the banks began to shut down (“The Great Depression”). The economy controlled the lives of these people, and the economic collapse brought a downfall to the entire

There was a steel mill company created in the 1900 in Gary by a president of the United States name Elbert H. Gary it was named after him. The steel started getting popular because everyone nationwide was using it to build railroads and homes. There three things they used to make steel such as iron ore, limestone, and coals. There was variety of coals that was used but the only one they use was called coke they had to burn a fuel that turned into coke. In order for them to make it, they had to make the coke burn at an extremely high temperature so they can produce it to melt big quantity of limestone and iron ore.

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Following WW I in the 1920’s, there was a decade of an economical explosion. The post-war era brought about many changes. Businesses showed great profits, migration to big cities of industrial companies occurred with the hopes of making a better life, people were given the opportunity to purchase things on credit, while others borrowed money making poor decisions buying high priced stocks with the intention of selling stocks for a profits to repay lenders. When Black Tuesday occurred on October 29, 1929, this marked the beginning of the Great Depression that left devastating economic hardships for the American people. Although it was always my belief that the stock market crash was the sole contributor of the Great Depression, there was

The Government needed to earn money to participate in the war, and so the government raised taxes.The Government raised enough money, more than $25 billion. Prices went up on food and fuels, before the war you paid 25 cents for a loaf of bread and after the war you paid $2. The economy was strong in the US, this period is often called "The Roaring '20s." The government 's debt shrunk, and there was also a rise in profits, what helped make some people rich. The price that farmers could get for their crops fell, and the farmers didn 't have enough money to buy more land. The US economy collapsed and the Great Depression began. The value of stocks fell, and some even lost all their value, this was called "Black Tuesday". During the Great

I have been around touring multiple states throughout the country. During my visit I have met a number of people who are hardworking, persistent and willing to help out in whatever way they can. They are all worried though, ever since the great depression has started they have been struggling, not just one but all as a whole. Families are poor, starving, and homeless. Natural disasters like windstorms and floods are also making it impossible for all these people to get up on their feet. Theses are your people, they are the backbone of america, it is hard to see men women and children struggle to gain daily life needs when they should just be essentials. While walking down the streets of Illinois I encountered multiple kids running around

Just about everyone has a reason for why the Stock Market Crashed in 1929. Aside from the views of the average person, Investopedia interviewed several economists who said that, “the market was overbought, overvalued and excessively bullish, rising even as economic conditions were not supporting the advance” (Pettinger 2). In order to completely understand what that means, it needs to be broken down and people have to watch what occurred pre-Stock Market Crash.

During the 1920's millions of Americans began investing in stocks for the first time. They heard about how rich people were getting by investing so they all decided to do it. Many new investors entered the stock market using borrowed money. Stock market prices rose steadily as inflated market demand outpaced increases in the capital value of businesses. Investors began to realize that a large imbalance existed between stock prices and the amount of money needed to back them up, and began to sell. On October 29, 1929, great numbers of people tried to sell their stocks all at once. This created chaos in the accounting of stocks and for brokers. The New York Stock Exchange and other exchanges prices dropped so dramatically that this event became known as the crash of 1929. Millions of investors lost their savings in the crash and many were deeply in debt since