The Great Depression
October 29 1929… What does this date mean to us in the U.S.? It means a great deal-For that is the day that we started what we thought was the beginning of the end. It was the beginning of what many would call the Great Depression.
What caused the Great Depression?
The Great Depression was caused by the stock market crash. The stock market crash was an event that happened on October 29, 1929. The crash was caused by overproduction in the United States and high import tariffs in Europe. What happened leading up to the the Stock Market Crash?
The boom in the stock market caused people to buy on margin. Buying on margin is when you make a small cash payment as little as 10% of purchase price. In fact before the crash,
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(Pusey)
On Oct. 19, 1987, a day that became known as “Black Monday,” the stock market crashed as the Dow Jones Industrial Average plunged 508 points, or 22.6 percent in value, its largest single-day percentage drop. The crash came after a two-week period in which the Dow dropped 15 percent. According to the Oct. 20 New York Times, “Business leaders were shaken by the collapse, which wiped out huge amounts of the market value of their companies. And they seemed to have been caught by surprise. But many leaders were confident the panic would
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Hoover did not do a whole lot he thought the stock market would get better by itself. It just kept getting worse. Hoover would not spend money that the U.S. did not have aka Deficit spending. Meaning he wouldn’t put the United States in debt. Seeming as then we did not have a single penny in debt. He did not have very many public works projects. In fact Hoover had only one public works project the Hoover Dam which only employed 5000 men for 5 years. Hoover’s inability to help people in U.S. made him a very unpopular president.
And then when the Bonus Army or soldiers from WWⅠ showed up to collect their Bonuses the government had Promised them. Hoover would not give it to them their bonuses so they set up camp on the National Mall. Hoover got tired of them so he ordered Douglas MacArthur to clear out the Bonus army. MacArthur used the U.S. Army to clear them out.
The infantry and cavalry deployed through the camp, rousting out the inhabitants then setting fire to the shacks. Eugene King, seven years old, taxed a soldier’s patience when he stopped to rescue his pet rabbit; the trooper plunged his bayonet through the child’s leg. It was not an isolated incident—there would be more than one hundred casualties that night, including an infant whose body was found among the smoldering ruins the next morning. (Thomas
After nearly a decade of optimism and prosperity, the United States took a turn for the worse on October 29, 1929 the day the stock market crashed, better known as Black Tuesday and the official beginning of the Great Depression. The downfall of the economy during the presidency of Herbert Hoover led to much comparison when his successor, Franklin D. Roosevelt, took office. Although both presidents had their share of negative feedback, it is evident that Hoover’s inaction towards the crises and Roosevelt’s later eccentric methods to simulate the economy would place FDR in the positive limelight of fixing the nation in one of its worst times.
The stock market crash of 1929 was one of the main causes of the Great Depression. Before the stock market crash, many people bought on margin, which caused the stock market to become very unbalanced, which led to the crash. Many people had invested heavily in the stock market during the 1920’s. All of these people who invested in the stock market lost all the money they had, since they relied on the stock market so much. The stock market crash also played a more physiological role in causing the Great Depression.
There were many causes for the Great Depression. The first and one of the largest was the stock market crash. Before 1929 the stock market was flourishing and everyone wanted to buy stocks. People were so confident in the stock market that they were buying “on margin”, which meant that brokers would lend them 10% of the money they invested (D1). The problems began when stocks were being over speculated. When people began to realize this, they began selling there shares. On October 29, 1929, 16 million shares were sold (D9). This day became known as “Black Thursday”, the day the stock market crashed (D12). The second reason was the overproduction of goods. Factories had already produced too many goods and now there was no demand for them. The government began to raise tariffs to protect Canadian industries but things only led downhill from there.
A time in America’s history was made dark by an economic downfall. The Great Depression made life almost unbearable for most people living in the 1930’s. The stock market crash started on Tuesday October 29, 1929, it is also known as “Black Tuesday”. The stock market crash is known as the worst economic collapse in the history of the modern industrial world (“The Great Depression”). The Great Depression was a deep economic crisis that began in 1929 and lasted until the nation’s entry
There were many reasons that caused the great depression of 1929. The foremost reason has to be the overvalued stocks, which led to the crashing of the stock market. The stock market crash of 1929 was then most significant market crash in U.S. history. though the crash lasted only four days, it led to a catastrophic sell-off. The Dow Average a loss of 90% of its value between its record high close of 381.2 on September 3, 1929, and its following bottom of 41.22 on July 8, 1932. That was the worst market in terms of percentage loss in modern U.S. history. It would be another 25 years before the Dow was able regain its September 3 high.
Finally, investors went into “panic mode” on October 24th, 1929, and began trading and dumping their shares, totaling a record of 12.9 million. Of course, following “Black Thursday,” the more well-known “Black Tuesday” ensued as a result of this. Between Black Monday and Black Tuesday, the market lost 24% of its value, and investors bought and traded over 28.9 million stocks. These stocks, now worthless, were used as firewood for some investor’s homes. The Dow Jones Company is perhaps the greatest example for this crash. Dow Jones started at 191 points at the beginning of 1928, then more than doubling to 381 points by September 1929. The crash caused their record 381 points to plummet to less than 41 p...
Today as I was walking on the streets of Harlem to get my daily newspaper, I noticed everyone in panic. People yelling at the bank workers, “Where’s my money?” “What do you mean, it’s gone?”. There was hardly any room to walk past the bank because of all the fuss about money. I couldn't get to the newspaper stand, but I found the “Brooklyn Daily Eagle” on the ground, it stated it was economic downfall with the stock markets. They call it “Black Tuesday” where all the share prices on the New York Stock Exchange completely collapsed. Today, October 29, 1929, marks the beginning of the Great Depression. I knew it would happen, people buying anything and everything with the money they do not have. America is going to face the worst years of their
Oftentimes people say, “History repeats itself,” and yes while sometimes that may be the case, it is still important to understand and study history and the effects it has. History is important to understand, in order for the people of today to progress and learn from the past. A way to illustrate history’s value is by studying the periods before, during, and after the Great Depression. When reviewing the Great Depression it is evident what lead up to it, how these factors can be avoided, and what to can be done in order for change to occur. There are essential questions historians must ask themselves such as, “How did it get to this,” “What measures were taken in order to change this fate,” and “How can the government ensure this does not
President Hoover tried designed to jump-start the economy and add jobs. He wanted to reform banks to provide mortgage relief and spend more $423 million federal money into business investment. Congress decided to pass the Federal Home Loan Bank Act, whi...
Beginning on Black Tuesday, October 29th, 1929, a total of 14 billion dollars was lost in America’s economy. Near the end of the week the 14 billion turned into a total of 30 billion dollars (The Great Depression Facts). Many events during the Stock Market Crash caused damage to the economy and lifestyle of the country, ending with recuperations from The Depression.
On October 24th, 1929 one of the most devastating events in American history occurred. Nearly half of America’s banks had failed and over 13 million people were unemployed. As a result of the Stock Market Crash of 1929, America spiraled downward into the Great Depression. Many people believed that Herbert Hoover was to blame for the Depression, because Hoover believed that the government should not do anything to the economy because the economy would eventually fix itself.
The black Tuesday, October 29th, 1929 has been identified as the symbol of the Great Depression. Stock holders lost 14 billion dollars on a single day trade, and more than 30 billion lose in that week, which was 10 times more than the annual budget of the Federal government.[ [documentary] 1929 Wall Street Stock Market Crash
On Thursday, October 24th, 1929, people began to sell their stocks as fast as they could. Sell orders flooded the market exchanges. (1929…) This day became known as Black Thursday. (Black Thursday…) On a normal day, only 750-800 members of the New York Stock Exchange started the exchange. (1929…) There were 1100 members on the floor for the morning opening. (1929…) Furthermore, the exchange directed all employees to be on the floor since there were numerous margin calls and sell orders placed overnight. Extra telephone staff was also arranged at the member’s boxes around the floor. (1929…) The Dow Jones Average closed at 299 that day. (1929…)
The roaring twenties came to an abrupt halt on October 29, 1929 as the stock market crashed. The steep descent started October 24, 1929, and lasted four days with over sixteen million shares being traded. Now known as Black Tuesday, economist have studies this day to get the the bottom of what caused the economic crash. Economist have found that social presence, decreased industry, loss of agricultural growth, and the invention of credit is inevitably what caused the market to crash that October day.
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.