Great Depression and the Stock Market

1945 Words8 Pages
In the 1920's, the economy of the United States dramatically increased. World War I had ended and leftover products, like steel, could now be sold to consumers. Big buisnesses, like General Motors, took over small companies, causing production to double. Inflation was non-existent and the unemployment rate was as low as it had ever been. The economy was booming, and it showed no sign of slowing down in 1929. However, the United States was about to recieve a huge shock when the stock market suddenly took a turn for the worst and crashed, leading to the Great Depression. This crash would become a major event in U.S. history due to the disastrous effects that followed it. In 1923, Calvin Coolidge became president of the United States. He was very buisness-oriented and helped push along the prosperity of the 1920's. In 1928, Herbert Hoover, Coolidge's secretary of commerce, took over as president. Not only was he also pro-buisness, but he was also interested in public service. For example, he helped Europe get back on their feet after World War I. His compassion for the poor and economic knowledge caused him to be declared the best qualified president of the 1920's. Not everyone prospered in the 1920's though. The average pay for workers in 1929 was 60 cents per hour, the same as it had been at the beginning of the decade. World War I had improved radio technology and led to the use of the radio for advertising. Buisness owners also kept iterest rates low so that consumers would use credit to buy expensive products. These factors resulted in any profit from the economic boom towards the working class to be spent right away. Many banks closed because too many people were taking out loans and milli... ... middle of paper ... ...elp Germany still and Germany's economy, still rebuilding from World War I, suffered greatly. Because of resentment towards their economic struggles, German people started joining the Nazis. Followers of the Nazis doubled every six months after the stock market crash. As you can see, the stock market crash of 1929 was a very important event in the United States history. It caused the nation to go from the "Roaring Twenties" to the Great Depression. In a matter of days, millions of investors lost all of their savings and couldn't pay back the loans that they had took out of the banks to pay for stocks. Overproduction by buisnesses caused a decline in the economy and taking back the loans to other countries had angered our foreign neighbors. Black Tuesday caused us to go from a prospering society to a struggling one that would never be the same.
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