The great depression was also cause by the poor distribution of wealth. The top 5% of the wealthy earned 70% of the income. People spent less because of the lack of money they had and industries struggled. There was high speculation in stocks.
During the 1920s there were countless Americans who were interested in Wall Street and in buying stock. The United States had of prosperity and success which then average Americans could buy luxury items. For example they had radios, vacuum cleaners, and automobiles. They could pay monthly installments and buy on credit.
Buying on credit allowed them to buy very expensive and nice items that they wanted but they didn’t have the money at the time to buy these things. There was also a down side to buying on credit which was that people would buy things that are very expensive and they couldn’t pay back the money they owed. This made many Americans deep into debt.
Buying on the margin is when you borrow from a broker to purchase stock. Not all stocks are able to be bought on margin. The Federal Reserve Board tells you which stock...
... middle of paper ...
...ve learned from this to make their economies better. We still are affected by this event but our country is still working to make our economy more powerful.
"Events That Led to the Stock Market Crash of 1929." Humanities360. Helium Inc.,, 2013. Web. 12 Nov. 2013.
"The Stock Market Crash of 1929." About.com. About.com, 2013. Web. 12 Nov. 2013.
"Stock Market Crash of 1929, October 24, 1929-October 29, 1929." DISCovering U.S. History. Detroit: Gale, 1997. N. pag. Gale Student Resources in Context. Web. 6 Nov. 2013.
"Wall Street Crash of 1929 and Its Aftermath." History Learning Site. HistoryLearningSite.co.uk, 2013. Web. 12 Nov. 2013.
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