Effects Of The Stock Market Crash Of 1929

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Stock Market crash Homeless starving families roaming the streets, billions of dollars lost never to be returned, and darkness and depression encompassing all aspects of life. This may sound like an impossible nightmare, but in reality millions of people suffered through these events thinking only of survival and how to get through the next day. What, could cause such horrendous events as these? Well, all of this was a result of what is known as the Stock Market Crash of 1929. In brief, the economy of the United States of America failed due to flaws within the market, and misunderstandings of its risk. Moreover, poor economic policies caused depression and financial turmoil, and took years of political reform to heal. When looking at…show more content…
The most obvious and broad effect of the stock market crash would be the notorious Great Depression, but one must delve deeper than this to understand the full range of damage. On one single day which is known as Black Tuesday (October 29, 1929), eight to nine billion dollars were lost. That however, doesn’t even scratch the surface of damage. For example, 30 percent of the United States population had become unemployed. This in turn, meant that nobody could afford home payments which lead to the crash of the housing market. Men, women, and children were all forced out onto the streets, trying to fend on their own, even in many cases without access to an income. In total, 30 million people had lost their source of income. These dire circumstances lead to the creation of numerous shack towns also known as “Hoovervilles”, which were named after the unpopular president of the time period. These towns were endless expanses composed of homeless people, including twenty-five thousand families. Nobody was safe to any degree, young or old. Teenagers who feared being a burden on their financially depressed parent would run away and ride the rails. Dedicated students who worked hard to obtain a degree and would be in a good position to obtain any desired job today were scrounging…show more content…
It has all come full circle, starting with the hopeful and false belief that the stock market was the eternal giver of infinite and safe wealth, along with how truly worthless those stocks actually were because of such high inflation. From there, the horrendous effects crashed down upon the United States with multitudes losing there’s jobs, many becoming homeless and struggling to survive, all while billions of dollars were lost often never to be seen again. Finally, things began to settle down as a new political era was ringed in, with reforms for economics, politics, banks, and workers’ rights being pushed through congress left and right. Drawing upon all of this information, it is hard to even fathom living for a single moment in the time period of the stock market crash along with the resulting Great Depression. That is why I ask you the reader, to try and picture what your life would have been like if you had grown up during this time. It seems like something that happened thousands of years ago because of how unreal and different things were then. It’s almost impossible for someone in the modern world to picture starving families on the streets and whole towns comprised of makeshift huts to house all of those who have been effected. However,
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