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Social effect of the great depression on the American society essay
Introduction to the 1929 Wall Street stock crash
Introduction to the 1929 Wall Street stock crash
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The stock market crash, October 29, 1929 this is also known as Black Tuesday. The Great Depression was an economic slump in North America and Europe. The industrialized Western world had experienced the most ruthless and prolonged depression. Cinderella Man is only one example of how families struggle and overcame the great depression. You will see how this effective many Americans.
Why the stock market crashed, was due to two factors, economic and financial. For example economic factors where, poor distribution of wealth, many consumers relied on credit, credit dried up, consumer spending dropped and industries struggled. Financial factors were a threat to the stock market rise in the mid-1920s. Speculation in stock increases, margin buying encouraged by Federal Reserve policies, and stock prices rise to unrealistic levels. These factors contributed to the Great Depression on how the people lost a lot of their money. However, political and business leaders rushed to calm the panic. They stated that this is only temporary, and the economy would soon recover. Many people, banks, business and even operations overseas were effective by the crash. For people, they lost not only the money they invested but also their savings, homes whatever they could sell to make up the difference they owed the brokers. The banks were also invested in the stock market. Between loans, deposits and investments made on margins some banks were pressure to close. Businesses were also forced to close, due to that the customers were not spending, and banks could not lend. These effected overseas operations, due to that we could no longer loan out money. We were trying to collect, but they could not repay. The United States and Europ...
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...y fell and regained themselves by fighting and never giving up. The government needs to take another close look at the causes of this depression and how we can stop it from happening again. In today times it seems we are approaching this. The government and/or the people should find better ways to sustain spending to prevent the collapse of the economy and start rebuilding it again. However, we do not want to restore by War like they did back then.
Works Cited
Ayers, Edward L., Schulzinger, Robert D., de la Teja, Jesus F., White, Deborah Gray. America
Anthem. United States: Holt, Rinehart and Wilson, 2007. 318-380.
Cinderella Man. Dir. Ron Howard. Perf. Russell Crow, Renee Zellweger. 2005. DVD. Universal
Studios.
“The Depression in the United States”. overview.htm> 8 March 2010
When “Black Tuesday” struck Wall Street on October 29th, 1929 investors traded 16 million shares on the on the New York Stock Exchange in just a day which caused billions of dollars to be lost and thousands of investors who got all their money wiped out. After the fallout of “Black Tuesday” America’s industrialized country fell down into the Great Depression which was one of the longest economic downfalls in history of the Western industrialized world. On “Black Tuesday” stock prices dropped completely. After “Black Tuesday” stock prices couldn’t get any worse or so they thought but however prices continued to drop U.S fell into the Great Depression, and by 1932 stocks were only worth about 20 percent of their value. Due to this economic downfall by 1933 almost half of America’s banks had failed. This was a major economic fallout which resulted in the Great Depression because it caused the economy to lose a lot of money and there was no way to dig themselves out of the hole of
A good reason for the stock market crash in 1929 was that, the values of stocks of the New York Stock Exchange were grossly over-valued, but government and business appeared to ignore the signs. 2 Canadian revenues that came in from export sales were dependent largely upon the United States who had the money for growth; the commodities were grain, pulp and paper and metals. Then when the New York crashed on October 1929, stock prices fell dramatically. When the stock market crashed, the Canadian economy suffered after the United States invoked high tariffs to shut out Canadian goods.
Danzer, Gerald, J. Jorge Klor de Alva, Larry Krieger, Louis Wilson, and Nancy Woloch. The Americans. 1. 1. McDougal Little, 2005. 1121. Print.
The Great Depression was a period in United States history when business was poor and many people were out of work. The beginning of the Great Depression in the United States was associated with the stock market crash on October 29, 1929, known as Black Tuesday. Thousands of investors lost large amounts of money and many were wiped out, lost everything. Banks, stores, and factories were closed and left millions of Americans jobless and homeless (Baughman 82).
As the fabulous Roaring Twenties came to an end, The Great Depression soon arrived, from the rapid expansion from the early twenties, to a devastating economic downturn, The Great Stock Market Crash of 1929 came as a shock to millions. During The Stock Market Crash many people suffered because this one major event in history crumbed America. While it appeared to be a total surprise to the people, the great crash was expected because, the Federal Reserve saw rising prices in early September, after World War I everyone spent money, and people put their whole life savings into stocks.
In 1929 the United States had entered an economic slump known as the Great Depression. The Great Depression was the longest financial decline in American history. The sudden, devastating collapse of US stock market prices on October 29, 1929, known as Black Tuesday, was just the beginning of this economic decline. The Great Depression changed society, socially and economically in many ways, including: family life, crime rates, and businesses.
Post the era of World War I, of all the countries it was only USA which was in win win situation. Both during and post war times, US economy has seen a boom in their income with massive trade between Europe and Germany. As a result, the 1920’s turned out to be a prosperous decade for Americans and this led to birth of mass investments in stock markets. With increased income after the war, a lot of investors purchased stocks on margins and with US Stock Exchange going manifold from 1921 to 1929, investors earned hefty returns during this time epriod which created a stock market bubble in USA. However, in order to stop increasing prices of Stock, the Federal Reserve raised the interest rate sof loanabel funds which depressed the interest sensitive spending in many industries and as a result a record fall in stocks of these companies were seen and ultimately the stock bubble was finally burst. The fall was so dramatic that stock prices were even below the margins which investors had deposited with their brokers. As a reuslt, not only investor but even the brokerage firms went insolvent. Withing 2 days of 15-16 th October, Dow Jones fell by 33% and the event was referred to Great Crash of 1929. Thus with investors going insolvent, a major shock was seen in American aggregate demand. Consumer Purchase of durable goods and business investment fell sharply after the stock market crash. As a result, businesses experienced stock piling of their inventories and real output fell rapidly in 1929 and throughout 1930 in United States.
The Stock Market Crash of 1929 was the most devastating crash in U.S. history. It started on October 24, 1929 and the downfall ended in July 1932. I always wondered what caused this calamity. Before starting this report, I knew basic idea about the crash. It was a time of decline and huge fortunes were lost. Now I can figure out just why.
There have been many issues that caused the stock market to crash. One major effect on the Great Depression was the current state of agriculture. The effect from both the Dust Bowl drought and the Great Depression made it hard on farmers in the early 1900’s; it was hard for farmers to produce crops (“The Ultimate AP US History”). Farmers with small businesses were forced to end their profession because of the new economic climate. As the farmers left the business of agriculture, there was less crop to sell the country (Pettinger). With the drop in prices after the war, it was difficult for farmers to stay current with loan payments (Romer and Pells).
3. Divine, Breen, Fredrickson, Williams, eds., America Past and Present Volume II: since 1865 sixth edition (New York: Longman 2002).
The stock market crash of 1929 was the primary event that led to the collapse of stability in the nation and ultimately paved the road to the Great Depression. The crash was a wide range of causes that varied throughout the prosperous times of the 1920’s. There were consumers buying on margin, too much faith in businesses and government, and most felt there were large expansions in the stock market. Because of all these positive views that the people of the American society possessed, people hardly looked at the crises in front of them.... ...
The US government’s role in the Great Depression has been very controversy. Different hypothesizes argued differently on the causes of the Great depression and whether the New Deal introduced by the government and President Roosevelt helped United States got out of the depression. I would argue that even though not the only factor, the US government did lead the country into the Great Depression and the New Deal actually delayed the recovery process. I will discuss five different factors (stock market crash, bank failure, tariff and tax cut, consumer spending and agriculture) that are commonly accepted to cause the depression and how the government linked to them. Furthermore, I will try to show how the government prolonged the depression in the United States by introducing the New Deal.
Breen, T.H., H.W. Brands, et al. America: Past and Present. Upper Saddle River NJ: Pearson, Print.
On Tuesday, October 29th, 1929, the crash began. (1929…) Within the first few hours, the price fell so far as to wipe out all gains that had been made the entire previous year. (1929…) This day the Dow Jones Average would close at 230. (1929…) Between October 29th, and November 13 over 30 billion dollars disappeared from the American economy. (1929…) It took nearly 25 years for many of the stocks to recover. (1929…)
The Great Depression was a period of first-time decline in economic movement. It occurred between the years 1929 and 1939. It was the worst and longest economic breakdown in history. The Wall Street stock market crash started the Great Depression; it had terrible effects on the country (United States of America). When the stock market started failing many factories closed production of all types of good. Businesses and banks started closing down and farmers fell into bankruptcy. Many people lost everything, their jobs, their savings, and homes. More than thirteen million people were unemployed.