The Stock Market Crash of 1929

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All nations in the world face tragedies. When a tragedy occurs in a nation it affects all the citizens of the country. People may get affected mentally, socially or even physically. But in some cases tragedies may lead to the gates of better living. One of those tragedies which help the nation reform as a whole was the Stock Market crash of 1929. The stock market crash of 1929 strengthened the nation as a whole as it lead to the creation of policies such as the Glass Steagall Act, Security Exchange Act and the Social Security Act.
The Stock Market crashed due to a plethora of reasons. After the World War I in America, the stock market had increased drastically. Many people believed that they could build profits on stocks and thus invested in them. Some people who didn’t have the money required, borrowed money from banks to invest in stocks. This was known as ‘Buying on Margin’. In 1929, there was a major decline in the stocks. This startled the investors and thus were searching for alternative people to buy his/her stock. The people who borrowed money from banks were unable to repay them which led to bankruptcy. Another cause would be the increase in the production of electrical appliances.This enabled american businesses to rise. People bought goods from businesses using credit cards, which allotted them time to pay money later. People bought many goods this way and were not able to buy merchandise later on because they were in debt. Businesses did not make profits because people did not buy their goods. This caused many businesses to shut down and also induced the stocks to go down. This initially triggered the start of the Great Depression. The Stock Market crash indicates the drop in the prices of stock. This occurred in 19...

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...a didn’t have the accessibility to these resources.(Social Security: A Program and Policy History)
Throughout the history of America, tragedies have caused people to suffer dearly. But in some cases tragedies are like stepping stones which help us to become a better nation. The stock market crash of 1929 strengthened the nation. It created many policies such as the Glass Steagall Act, Security Exchange Act and the Social Security Act which have contributed to the welfare of the people. People were granted money during unemployment and old age. The government also funded for the ill and the handicapped and also ensured the security of the peoples money. These acts have provided americans support and many services to lead a sophisticated lifestyle where no americans suffer. Some may think that a tragedy is the end of the world, but maybe its just a new beginning.

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