With the end of the first World War the United States was benefiting financially by helping Europe, until the stock market crash that has happened on October 24, 1929 (Benson). This means that with the stock market crashing, the U.S. would fall economically along with the ones who relied on them for support in Europe. This is important because if the United States and Europe have economic trouble this would be a problem for international trade and hurt even more countries. Since so many people had invested in stocks, the people lost all of their money, almost over night, and jobs had decreased leaving many unemployed (“Great Depression”). This is important because this means people would not be able to afford the everyday essentials such as food and water.
Although this day is considered the trigger to the massive economic fallout, the American and global economies had been in turmoil for six months prior to Black Tuesday, and many other factors contributed to what’s known as the worst economic crash in modern history. With few regulations on the stock market in the years leading up to the Great Depression, investors were able to buy stocks on margin, only requiring them to put down ten percent. This caused for wild speculation, and many people funneling their life savings into the stock market, which led to artificially high prices. After Black Tuesday, many people began to believe that the banking system in America was going to fail. Thousands flocked to the banks to withdraw their money.
Unemployment became the most important problem of the depression to the people living in the US. Another major problem was that the agricultural prices were cut almost in half, and many farms foreclosed because of it. The author goes on to say that there are many different theories as to why the stock market crashed that day. One was that the attempts of the US government and the Federal Reserve Board to stop speculation caused an overreaction in the market, leading to the selling panic. The next big event in the book was the effects the stock market crash had on America.
392). Many lost their jobs and homes and farms, banks, and factories were shut down as well. The Great Depression was the turning point in American History. Although the Depression did create massive unemployment and the drought in the southern states that came not too far after it did destroy land, President Frederick D. Roosevelt came up with some plans to dig those people out of the hole they were in. The Depression was the onslaught to massive unemployment.
Stock Market Crash causes The Great Depression The stock market crash, one of the most miserable times in the history of the United States stock market. Well, the stock market had many investors who lost most of their money either by the banks or the stock market. The stock market crash caused the Great Depression by making investors and companies lose majority of their money. The Great Depression was the worst unprofitable 10 years in history. This worst time period lasted from 1929 to 1939 and it began after the stock market crashed in 1929.
It is easy to see that the Stock Market Crash was a horrible event for America. It led to the downfall of our economy and hurt many Americans. The Stock Market Crash eventually showed how strong America was because we were able to pull out of something so horrible and it led to the thriving economy we have today. Works Cited "Stock Market Crash of 1929." History.com.
The people that were affected the most by the Great Depression were stockholders. Thousands of stockholders lost enormous amounts of money on Black Tuesday. The rapid decrease of stock prices made stockholders lose their money within one day. Even though it was a devastating loss, there was no way to predict it. From 1925 to 1929, the average stock price doubled on the New York Stock exchange, making people invest ludicrous amounts of money in the hope that they would make a hug... ... middle of paper ... ...hange crash of October 1929 and therefore the succeeding depression alerted stockholders to be concerned about their own investments within the stock exchange instead of the data of other people’s investments.
The stock market did crash on October 29 1929. The Federal Reserve tried to do to much to stop the recession and in return brought on the recession that they were trying to stop (America). When the stock market crashed in October this day was known as “Black Tuesday.” On this day Americans saw their stocks lose a tenth of their value. The exact reason for why the stock market busted on this day are unknown (Delong 1). The stock market cras... ... middle of paper ... ...t of 1935, which raised personal income taxes on the highest income levels (America).
Even though it first happened in America, other parts of world were also involved such as Australia, Canada, China, France, and Germany etc. During the Great Depression, the number of people unemployed increased, causing a lot of people to be jobless. Personal income, tax revenue were greatly affected. Many people thought that the cause of the Great Depression was started by the stock market crash on October 29, 1929. Truth is, it was a misconception.
In addition to North America, the Depression greatly affected Europe and other various countries throughout the world significantly during the 1920’s and 1930’s. The Great Depression was caused by the collapse of the Stock Market, which happened in October of 1929. The crash exhausted about forty percent of the paper values of common stocks. It was the worst depression due to the fact that at the time of the Great Depression the government involvement in the economy was higher than it had ever been. A unique government agency had been set up exclusively to prevent depressions and their related troubles for instance bank panics.