Causes Of The Wall Street Crash Of 1929

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The Wall Street Crash of 1929 was one of the most devastating times in the history of the United States of America, it plagued each city and town with starvation, homelessness and even suicide. The twenties were truly a tough time for the US and all of its citizens. The Roaring Twenties, the decade that came after World War I and inevitably led to the Wall Street Crash, came in a time where money and wealth were prevalent. Coming after the war, the United States had great confidence, a large amount of Americans who lived in secluded areas or small towns moved to the big cities to promote an industrial living style in the United States. While the American cities flourished and blossomed into the greatest places on earth,the amount of people who moved to the big cities left the agricultural ways of the US in the dust, leaving the farmers in economic shock, making agriculture the main reason for a major loss of money in the US. This happened throughout the decade and would later be blamed as one the main factors that led to the 1929 stock market crash. Over the weekend of October 26th and 27th , the activity of the Stock Market was known and read all across the United States. On October 28, "Black Monday", a huge amount of investors decided to abandon the stock market in order to maintain their personal wealth, and the downfall erupted with a record loss in Dow Jones Industrial for the day of 38.33 points, or 13%.(Galbraith 47) The next day, "Black Tuesday", October 29, 1929, about sixteen million shares were traded, and Dow Jones lost an additional 30 points, or 12%, talk flurried that U.S. President Herbert Hoover would not veto the pending Smoot-Hawley Tariff Act. The volume of stocks traded in order to maintain wealth or at... ... middle of paper ... ...usinessmen in 1932 when things were just about at their worst. Squalid cardboard campsites were created in cities to live in...called "Hoovervilles". The nick-name of the soup given out by charities for the unemployed was "Hoover stew". However, Hoover did do some good. Money was used to create jobs to build things such as the Hoover Dam. In 1932 he gave $300 million to the states to help the unemployed (Emergency Relief and Reconstruction Act) but it had little impact as states run by the Republicans believed in "rugged individualism" more than Hoover did and they used only $30 million of the money offered to them. Which seems backwards, but they stood behind what they believed in and it ended out fine. The stock market crash of 1929 was the most significant crash in U.S. history. Although the crash itself only lasted four days, it led to a catastrophic sell-off.

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