Essay On The Stock Market Crash Of 1929

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The Stock Market Crash marked a major turning point in the history of the United States. For decades the U.S. was the world’s leading superpower, but after the crash the country cascaded into the worlds most harsh depression. This crash was caused by a series of problems in the U.S. including, the over production of goods, unequal distribution of wealth and poor regulation of the stock market itself. Many can argue that the crash of 1929, strengthened the nation, allowing for policies such as roosevelt's first new deal, second new deal, the glass steagall banking act, and new regulations in the stock market, and for big business (Blumenthal, Karen). However, what can’t be argued is how the crash sparked a panic as companies, peoples, and the nation sank into the great depression.
The Stock Market crash of 1929 was a terrible event in American history, creating chaos and panic. The crash was caused by an overproduction and underconsumption of goods, and use of credit in the market. People would use credit to buy stocks, and could not afford to repay their loans. This created a failure among banks, overall affecting the nation as a whole. In October of 1929, the Stock Market crashed leading to billions lost in the market, sparking the great depression. ("Overproduction Seen as One of the Cause of Our Most Recent Crisis.")
The Stock Market was being abused for years. Long term wise, people who used the stock market began to use credit to buy their stocks, borrowing from banks, and were unable to pay back their loans. The Government during this time used a policy of Laissez Faire, the consolidation of corporation was not challenged, favoring the wealthy (FEARON, PETER).
As the confidence in the Stock Market began to fall, the peo...

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... Bonk). Although many of the banks were back in business, and ready for use again, the country was still in the middle of its biggest depression, and Roosevelt knew that fixing this was at the top of his agenda (FEARON, PETER).
In Conclusion, although the stock market crash created a terrible place in american history, the crash also strengthened the nation for the future. The government was now regulating the market, and put in new legislation for future depressions, or recessions. After these pieces such as the glass steagall banking act were recalled, history repeated itself, as the stock market once again had a similar fall in 2008. With these regulations in place, the stock market, and the economy could be much more secure for future decades. The Stock Market Crash of 1929 should be an example for the future, showing that history in fact repeats itself.

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