The Causes Of The Stock Market Crash Of 1929

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“Alas, in 1929 came the stock market crash and everything changed and became worrisome. People starting practicing conservation because of financial losses, myself included” (Negri). The roaring thirties were full of an array of scandals, a rise in the growth of automobile ownership, woman’s fashion, and the stock market crash of 1929. It all began on the 24th of October. It was known as the most devastating stock market crash in the history of the U.S. Many families endured the events leading up to unemployment and bankruptcy. From 1923 to 1929 the stock market grew 500 percent. As the stock markets continued to rise everyone wanted to invest, unfortunately not everyone had the money for stocks in the first place, so they borrowed the money …show more content…

A house during the Depression cost around 3,000 dollars, which might not seem like much, however this was an enormous amount of money in those times (Great Depression). Employers couldn’t afford to pay their workers and had to lay a large amount of them off. Hourly wages had dropped by 50 percent and one-fourth of the labor force, which consisted of about 15 million people that were left without jobs (Great Depression). Even the previously wealthy were struck with hard times as some millionaires found themselves selling apples on the streets for five cents each (Great Depression). Even though goods could be purchased with just a few dimes the demand for these goods were at an all time low. The fortunate few that were still working found that they had little left to spend after paying for their rent and putting food on the table (Great …show more content…

In 1932, 20% of the stock market values were not the same as the summer of 1929. Franklin D. Roosevelt helped lessen the worst effects of The Great Depression, however the U.S. economy would not fully turn around until after 1939. Today’s economy is a quite different compared to the 20s and 30s. For example: in that era, we exported different commodities around the world, but today we import a lot more than we export, Secondly, we have lots of debts, but continue to import these commodities, creating a continuous downward spiral that only lead to a larger and larger deficit. While we are in a better financial situation than we were during The Great Depression, we should as a country look to the past to learn from our previous blunders. While nothing in the modern time comes close to the hard times suffered during The Great Depression, other small crashes have been felt throughout the country’s history. Most notably in 2008 when many staple financial institutions either went bankrupt, or were rescued only through government intervention. With a stock market drop of what was usually generalized to twenty percent, America had not seen this kind of financial instability since the 1930s. This rapid drop off also caused panic with most European investors, evolving into a much bigger crisis

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