15 million workers were left jobless. Billions of dollars were lost, wiping out thousands of investors (Taylor). The Stock Market Crash began in late October 1929 and was the most overwhelming crash in the history of the United States. “Stock prices began to decline in September and early October 1929, and on October 18 the fall began. On October 24, a record 12,894,650 shares were traded. Investment companies and leading bankers attempted to stabilize the market by buying up great blocks of stock. On Tuesday, the stock prices collapsed completely” ("Stock Market Crashes"). Thousands of people were invested in these stocks and they lost millions of dollars because of the crash. The Stock Market Crash triggered a banking crisis, business failures and trouble overseas. American banks were affected most by the Stock Market Crash. Many banks had to go out of business which had an immense impact on American people. “Worse, many banks had themselves invested, directly or indirectly, in the stock market. They had purchased stock in companies whose shares were now crumbling in value” (Ayers 678). After the stocks crashed, people who were invested in them, lost thousands even millions of dollars. The banks were the top investors so they lost the most amount of money with their invested stocks, along with the frightened depositors withdrawing their savings, draining money quickly from the bank. Hundreds of banks failed and shut down because of their loses. CLOSING STATEMENT: although, … Businesses were also affected by the Stock Market Crash. Many businesses were already struggling so the crash hurt them even more. “With money scarce, banks and investors were suddenly unwilling or unable to provide industry with the money it needed to gr... ... middle of paper ... ...oblems here in the United States started happening overseas. There was a high tariff put on products that were needed to be exported to other countries which caused more harm to other economies. 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. A&E Television Networks, n.d. Web. 16 Dec. 2013. Ayers, Edward. Holt American Anthem. Orlando: Holt, Rinehart and Winston, 2009. Print. Taylor, Nick. "The Great Depression." The New York Times. N.p., n.d. Web. 06 Jan. 2014. "Stock Market Crashes." History.com. A&E Television Networks, n.d. Web. 09 Jan. 2014.
The stock market crash of 1929 is 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. More businesses became aware of the difficulties, which caused businesses to not expand and start new projects. This caused job insecurity and uncertainty in incomes for employees. The crash was also used as a symbol of the changing times. The crash lead the American peop...
Nextly, the stock market crash also caused the economic fallout which resulted in the Great Depression. Because “Black Tuesday” wiped away billions of dollars and thousands of investors, it caused a great amount of economic fallout. When “Black Tuesday” struck Wall Street on October 29th, 1929, investors traded 16 million shares on the the New York Stock Exchange in just a day which caused billions of dollars to be lost and thousands of investors who got all their money wiped out. After the fallout of “Black Tuesday” America’s industrialized country fell into the Great Depression, which was one of the longest economic downfalls in the history of the Western industrialized world.
The joint financial failures of the companies sparked a crash in the stock market. This served as a catalyst for a surge of bank failures because many New York banks were big investors in the Stock Market. The financial disaster began in New York and soon permeated its way throughout the country. Over a six-month period, over 8,000 businesses, 156 railroads, 400 banks failed, and 20% of Americans were unemployed By July of 1893, there was massive unemployment in factories and extensive wage cuts.... ... middle of paper ... ...currency.
Pindar, Ian. "The Forgotten Man: A New History of the Great Depression by Amity Shlaes." The Guardian, August 9, 2009.
The shares values had fallen and this left people panicking. Many businesses closed and several of the banks did not last because of the businesses collapsing. Many people lost their jobs because of this factor. Congress passed Roosevelt’s Emergency Banking Act, which helped reorganize the banks and closed the ones that were insolvent. Then three days later he urged Americans to put their savings back in their banks and by the end of the month basically three quarters of them reopened. Many people refer to the Banking Act as the Glass Steagall Act that ended up prohibiting commercial banks from engaging in the investment business and created the Federal Deposit Insurance Corporation. The purpose of this was to get rid of the speculations in securities making banking safer than before. The demand for goods were declining, so the value of the money was
"America's Great Depression and Roosevelt's New Deal."DPLA. Digital Public Library of America. Web. 20 Nov 2013. .
Watkins, T.H.. The Great Depression: America in the 1930s. Boston: Little, Brown & Co., 1993.
October 29th, 1929 marked the beginning of the Great Depression, a depression that forever changed the United States of America. The Stock Market collapse was unavoidable considering the lavish life style of the 1920’s. Some of the ominous signs leading up to the crash was that there was a high unemployment rate, automobile sales were down, and many farms were failing. Consumerism played a key role in the Stock Market Crash of 1929 because Americans speculated on the stocks hoping they would grow in their favor. They would invest in these stocks at a low rate which gave them a false sense of wealth causing them to invest in even more stocks at the same low rate. When they purchased these stocks at this low rate they never made enough money to pay it all back, therefore contributing to the crash of 1929. Also contributing to the crash was the over production of consumer goods. When companies began to mass produce goods they did not not need as many workers so they fired them. Even though there was an abundance of goods mass produced and at a cheap price because of that, so many people now had no jobs so the goods were not being purchased. Even though, from 1920 to 1929, consumerism and overproduction partially caused the Great Depression, the unequal distribution of wealth and income was the most significant catalyst.
The Wall Street’s Great Crash happened on October 29, 1929, ten years before World War II started. Many investors and buyers were upset since they have lost tons of cash and rates were decreasing dramatically. The Stock Market had lost
Banks all around, especially the large ones, sought to support the market before it could crash down. As the stock prices crashed, banks struggled to keep their doors open (“Economic Causes and Impacts”). Unfortunately, some banks were unsuccessful. Customers wanted their money out from their savings account before it was gone and out of reach, leaving banks insolvent (“Stock Market Crash of 1929”).
The stock market crash of 1929 was the primary event that led to the collapse of stability in the nation and ultimately paved the road to the Great Depression. The crash was a wide range of causes that varied throughout the prosperous times of the 1920’s. There were consumers buying on margin, too much faith in businesses and government, and most felt there were large expansions in the stock market. Because of all these positive views that the people of the American society possessed, people hardly looked at the crises in front of them.... ...
On Tuesday, October 29th, 1929, the crash began. (1929…) Within the first few hours, the price fell so far as to wipe out all gains that had been made the entire previous year. (1929…) This day the Dow Jones Average would close at 230. (1929…) Between October 29th, and November 13 over 30 billion dollars disappeared from the American economy. (1929…) It took nearly 25 years for many of the stocks to recover. (1929…)
"Great Depression in the United States." Microsoft Encarta Encyclopedia 2001. CD-ROM. 2001 ed. Microsoft Corporation. 2001
When the stock market started failing, many factories closed production of all types of goods. Businesses and banks started closing down and farmers fell into bankruptcy. Many people lose everything, their jobs, their savings, and their homes. More than thirteen million people are unemployed. The Great Depression caused major political changes.
After people started buying too many new things, a crash happened. There were many reasons why this happened. For example, people viewed the stock market as a short term investment instead as a large one. The boom was enormous and the crash itself was huge. The Great Depression lasted in the 1920s and was the biggest one in Americas history. The crash could have been prevented if consumers did not purchase too much.