The Stock Market crash caused the Great Depression by making investors and companies losing majority of their money. The stock market crash happened on October 29, 1929 and was caused by the trading and selling of 12.9 million stocks. The Great Depression lasted from 1929 to 1939 and was the worst economic crisis which caused many people to become unemployed, businesses, and banks started to close and fail. Also the depression challenged American people and families by putting them in economic and social issues. Millions of people and families lost their savings and many banks which failed in the duration of the
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.
The stock market crash during the 1920s, stock prices far exceeded their real value. Many stock buyers bought stock on boundary, or on money borrowed from the stock brokers. When stock prices fell many investors with margin accounts were forced to sell, driving prices down even further. Stock prices began to fall in September 1929, but in October 29 so called “Black Tuesday”, was the worst day in stock history, the stock market on that day, the prices drop dramatically. When the economy collapsed with it, people everywhere lost their jobs and homes.
The effects of The Great Depression lasted for many years. The Great Depression started on a day in American and world history that was sindged into our hearts forever; October 29, 1929 (Black Tuesday). The Dow Jones Industrial average on the New York Stock Exchange fell 12% and caused many people to lose their invested money and assets. The Depression was felt worldwide as we saw nearly 35% of all jobs and trade lost during this period of time. At the depression’s peak, the Dow Jones Industrial Average lost 89% of its assets and value.
The stock market was the main cause that forced American into the Great Depression. The stocks were a towering success until the collapse; the crash forced many Americans into poverty because they had to sell almost everything they had to repa... ... middle of paper ... ...tter poverty. The depression affected millions of Americans and I got to really feel what they went through when I watched the movie Cinderella Man. Jim Braddock the main character of the movie went thorough tough times; he lost his job, couldn’t support his family and witnessed loved ones being lost to the Great Depression. Going through all this just made him a stronger man.
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.
The Great Depression The Great Depression was an economic slump in North America, Europe, and other industrialized areas of the world that began in 1929 and lasted until about 1939. There were a few main areas of focus during the Great Depression. The key areas were the Crash of the Stock Market, Unemployment Rate, the effect on the rest of the world, World War II and our political out look and the way different countries handle themselves today. The Great Depression was the longest and most severe depression ever experienced by the industrialized Western world. Though the U.S. economy had gone into depression six months earlier, the Great Depression may be said to have begun with a catastrophic collapse of stock-market prices on the New York Stock Exchange in October 1929, when President Hoover came in office.
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.
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.
The Great Depression was a huge economic downfall in North America and involved many other industrialized countries of the world. The Depression began in 1929 and lasted for about ten years. Millions of people lost their jobs along with many businesses going bankrupt. The common misconception of the Great Depression is people think that the stock market crash was the main cause for it. There were many causes for the Depression; unequal distribution of money during the 1920’s was the main cause of the Depression.