Causes Of The Boom Boom Crash

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Recommended: American reality of the 1920s

Mr.Thiesen Ben Warren Social Studies (7) April 20, 2014 Boom, Boom, Bankrupt In 1920, the times in America were great, too great. During the time period, prohibition, flappers, gangsters, and new technologies began. There was a glut of merchandise and not enough room for it. Within that time period, there was the biggest stock boom in Americas history. There were millionaires and billionaires and the stock market itself was high. There was so much money that the government tried to make a silver dollar. Buying to excess was a major reason that caused the stock market to eventually crash. If people did not purchase as much and have been smarter, the crash would maybe not have happened. The 1920s in America was an exciting rise socially and economically. The economic rise of the 1920s was based on selling more and more goods.There was Prohibition and at one point selling alcohol was illegal. Speakeasies and bootleggers had alcohol illegally and flappers (a fashionable young woman intent on enjoying herself and flouting conventional standards of behavior) would drink, go out, and smoke. Also, many people went out to go see movies in theaters. Historians estimated that three quarters of the population saw a movie every week. (Source 1) It became okay for women to do this in society but they were considered rebellious. Frequent new merchandise came out so people kept on buying to excess. People had the money because of the stock they invested in and pay was high. There were more and more new objects, such as the Model T, refrigerator, dishwasher and many others. (Source 1) There was no more room for these objects so they were stored in warehouses. Eventually there was a collapse because there was more... ... middle of paper ... ...ource 1) Inevitably, all of the gains were ended. On October 24, 1929, Thursday, the prices for stocks plummeted. Many people were selling their stocks and margin calls were sent out. People even committed suicide because of all the money lost. On “Black Thursday”, 12.9 million shares were sold, doubling the previous record. Joseph Kennedy did well by selling what he owned so he would have money when the inevitable depression happened. (Source 6) After people started buying too many new things, a crash happened. There were many reasons why this happened. For example, people viewed the stock market as a short term investment instead as a large one. The boom was enormous and the crash itself was huge. The Great Depression lasted in the 1920s and was the biggest one in Americas history. The crash could have been prevented if consumers did not purchase too much.

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