All this extravagance would soon disappear and everything people bought on credit or margin would soon come back to haunt them. October 29, 1929, what would later be known as “Black Tuesday,” was the day that the stock market crashed and The Great Depression started. The stock market prices had continually gone up and up to a point where there was no possible way that businesses were going to make that much in their future earnings. Investors began to sell their stocks in large quantities. Around 16 million shares were sold just on “Black Tuesday”.
The stock market was crumbling... ... middle of paper ... ...n of manufactured goods, resulting in businesses to shut down, so millions were out of work. Works Cited Callan, Jim. America in the 1930s. New York: Facts On File, 2005. Print.
Working class individual were buying stocks but because no regulations was in place to over see production and control the disparities of wealth gap between the working class citizens and the well to do exploded (Bali 225). This set the tone for the overproduction in industry that led to the bubble because many workers could not afford to buy the industrial output. Also, during the 1920’s, credit was introduced and the stock market was booming. What caused the worst depression in history? What events led up to the economic failure?
Beginning on Black Tuesday, October 29th, 1929, a total of 14 billion dollars was lost in America’s economy. Near the end of the week the 14 billion turned into a total of 30 billion dollars (The Great Depression Facts). Many events during the Stock Market Crash caused damage to the economy and lifestyle of the country, ending with recuperations from The Depression. There have been many issues that caused the stock market to crash. One major effect on the Great Depression was the current state of agriculture.
1929. New York Times (1923-Current file), Mar 08, 1929. http://search.proquest.com/docview/104752242?accountid=12964 (accessed April 29, 2013). 11. Wheelock, David C. 1992. Monetary policy in the great depression: What the fed did, and why.
In fact, Galbraith notes that the majority of people during this time did not have substantial savings or high incomes. The author also points out the lack of distribution of wealth as an underlying cause of the crash because the economy was dependent on the financial contributi... ... middle of paper ... ...ance. 11. no. 1 (1956): 100-101. http://www.jstor.org/stable/2976547 (accessed October 4, 2011). Pitzer, Matt.