Black Tuesday Dbq

The stock market crash, called Black Tuesday. Unequal distribution of wealth was a key factor during the time period as well. The day know as “Black Tuesday” was the day the stock market crashed. This led to the fall of stock prices, in fear, people sold their stocks and gathered the money they could. The people who didn’t, lost all of their stocks. Those who bought them on credit, they were now in debt. Investors lost a collective amount equal to the amount spent in WWI, that’s billions of dollars gone, approximately thirty-two billion dollars (32,000,000,000). As bad as the crash was, unequal distribution of wealth did not help. The rich saw an income increase of 70%, and the poor saw an increase of 9%. More than 70% of families earned less than $2500/year. Many of these families couldn't afford household products, such as the flood of overproduced goods. Only one out of ten families owned an electric refrigerator. One thing many people overlook when on the subject of the Great Depression is the president's influence on the situation. The two presidents during this time were Herbet Hoover and Franklin D. Roosevelt. Hoover was in office during the collapse of the economy, he didn’t believe in national relief, he believed in self-prevalence and self-help. His beliefs didn’t get the confidence of the people, in 1933, a fourth of working American’s were out of a job, that’s more than fifteen million people unemployed. Many people disliked Hoover, so when they needed to make a home out of paper, glass, tin, or whatever they could find, they named the towns constructed from these items “Hoovervilles”. They were found mostly on the outside of cities. Hoover's idea of self-reliance didn’t get him reelected, he lost to Franklin D. Roosevelt in 1933. Roosevelt brought forward a new strategy to take on the economic problems, it was called the New Deal. The New Deal was a series of actions him and his

After the Stock Market crashed in 1929, the American economy was at its lowest point. The consequences of this crash were that the birth rate decreased, over 70,000 businesses were forced to close, and jobs became so limited that white workers started taking the undesirable jobs previously held by the African Americans and Mexicans. President Hoover’s voluntary system of associationalism and limited government did not help with the economic recovery.

The New Deal was a specific set of government works programs put into effect by President Roosevelt in response to the Great Depression. The New Deal took action to bring fast economic relief as well as improvements in industry, finance, agriculture, housing, the labor force, etc. The traditional American policy of laissez-faire was opposed in the new democratic promise of the “New Deal”. The majority of the New Deal was enacted in the first couple months of FDR’s presidency, which later became known as the Hundred Days. The first objective was to lessen the hardship of the large amount of unemployed workers in the nation. The Works Progress Administration(WPA) and Civilian Conservation Corps(CCC) were created to establish short term government aid to temporary jobs. The National Recovery Administration (NRA) was created to develop rules to govern trade practices, hours, child labor, wages, and collective bargaining. Also, the New Deal worked to avoid another stock market crash and bank failures.The Federal Deposit Insurance Corporation (FDIC) gave insurance for bank deposits and the Securities and Exchange Commission (SEC) was created to protect the people from stock-market companies committing fraud. An agricultural program , the Agricultural Adjustment Administration (AAA) attempted to raise prices by providing subsidies to farmers to reduce crop production. The New Deal was filled with government works programs to help pull the country out of the Great Depression but,

The Great Depression was a devastating time for many Americans. From 1929 to 1932, the US experienced an economic downturn that was calamitous to the lives of many people. Millions upon millions of Americans lost everything when the stock market crashed on October 29, 1929. After exiting an era that left people living a life of luxury, the stock market crash came as a surprise. As a result of the stock market crash, many became unemployed and many families were being forced to close their businesses. Although there were many factors that contributed to the cause of the Great Depression, the three main causes were The Stock Market Crash of 1929, high unemployment, a decrease in consumer purchases due to being “stuffed with stuff” during the roaring twenties.

Besides ruining many thousands of individual investors with crash, the decline in the value of assets greatly strained banks and other financial institutions as well. These places made the same big mistake the American people did before the crash, they had too much confidence and was very naive about the current state of the economy. Due to their false confidence in the economy they made an overextension of credit. Particularly the banks that held stocks in their portfolios were affected. Many banks were so confident in the newly rising economy that they irrationally gave out loans to citizens who wanted to invest in stock even when the stock was not 100% secure which became apparent during the Stock Market Crash of 1929 (Nelson). The crash of the banks did not only

The New Deal was a set of federal programs with the principle of social-welfare liberalism. President Roosevelt was deeply compromised to help the most vulnerable in the ongoing crisis. In second inaugural address he outlines the progress of the New Deal “We have always known that heedless self-interest was bed morals…. Out of the collapse of a prosperity whose builders boasted their practicality has come to the conviction that in the long run economy morality pays.” At some extend President Roosevelt proudly tell the Nation that he was heading to the right direction to progress. Some of the New Deal successful programs that brought relief and dignify living to many Americans were Agricultural Adjustment Act (AAA) a direct governmental regulation of farm economy to resolve the overproduction problem. In the unemployment relief, the Federal Emergency Relief Administration (FERA) that provided federal funds for state relief programs. Public Works Administration (PWA) a construction program that lead to Civil Works Administration (CWA) that provide work for more than 4 million Americans repairing, building, and constructing America's infrastructure. The Civilian Conservation Corps (CCC) that mobilized young men to do reforestation and conservation work helping their family’s income and the country reservation. In 1935 in housing issues Works Progress Administration (WPA) Home Owners Loan Corporation (HOLC) that help many Americans keep their

Also, almost immediately after Roosevelt became President he closed all banks for four days. He then called a special session of Congress, together they created the Emergency Banking Relief Act. It set up a system so the banks could reopen or reorganize. Document 2 also says that Roosevelt communicated with the public over the radio, assuring Americans that their money would now be safe in banks. People began depositing their money again the next day after. There were also a few solutions for the people who didn't have jobs and money. The Federal Emergency Relief Administration (FERA) gave federal money to state and local agencies. These agencies then distributed the money to the unemployed. Also, the CCC (Civilian Conservation Corps), a New Deal program that hired unemployed men to work on natural conservation projects. The Works Progress Administration (WPA) came into existence in 1935. The WPA put the people who didn't have jobs to work, by making clothes and building hospitals, schools, parks, playgrounds, and airports. In order to help farmers, the President asked Congress to pass the Agricultural Adjustment Act (AAA). Under the AAA, the government paid farmers not to grow certain crops. These are some of

The Stock Market Crash occurred on October 29th, 1929. Wall Street got struck on Black Tuesday when, on the New York Stock Exchange, investors traded 16 million dollars worth of shares in one single day. Billions of dollars were cut, destroying the investments of thousands of investors. After the event of Black Tuesday, America’s industrial world spiraled downwards into the Great Depression. This was the most powerful and extended economic breakdown in the history of the Western Industrial world up till then.

During this time, “…FDR promised ‘a new deal for the American people’” (Polenberg, 8). FDR quickly realized that in order to win over the citizens of the United States and to fix the crisis they were in, he had to address the two main things that he saw every American wanted during this economical depression. Polenberg informs his readers that FDR saw that the two things every American wanted was “…Work; work with all the moral and spiritual values that go with work. And with work, a reasonable measure of security—security for themselves and for their wives and children” (p.8). Knowing that these were the two main aspects (at the time) that FDR had to place the majority of his attention on, he went to work immediately as “He feared that a resolution was likely if he failed, as Hoover had, to solve the nation’s problems” therefore he begun formation of the first New Deal reforms (Polenberg, 8). These reforms were “…designed not so much to promote reform as to proceed recovery,” (Polenberg, 9) therefore indicating that “…the Roosevelt administration intended to move the country in a dramatically new direction” (Polenberg, 9). Some of the programs that the New Deal initiated were: the NIRA (National Industrial Recovery Act), the NRA (the National Recovery Administration), the AAA (Agricultural Adjustment Act), the WPA (Works Progress Administration), the CWA (Civil Works Administration), and the TVA (Tennessee Valley Authority) just to name a few (Polenberg, 9-13). Each reform act was aimed at recovering a different but specific area of society. For example, the TVA worked to “…provide cheap electrical power… and… help prevent soil erosion and control floods” (Polenberg, 13) while the AAA “…served as the foundation of New Deal farm policy… balancing agricultural production and consumption so as to avoid surpluses and ensure that

The Great Depression was a time of great economic tragedy during the 1930’s. October 24, 1929 was the day of the stock market crash, causing economical shortage everywhere, even globally, and this scared everyone, including the rich. This day was/ is known as “Black Thursday”, where over 2.9 million shares were traded. On “Black Tuesday”, five days later, more than 16 million more shares were traded in another wave of panic. Many investors then lost confidence in their banks and demanded deposits in cash which forced the banks to liquidate loans in order to supplement their on hand cash reserves. By 1933, around 15 million Americans were unemployed and nearly half of the country’s banks had failed. This stopped Americans from purchasing which then led to less production of goods and decreased the amount of needed human labor. In the end, millions of shares ended up worthless, and those investors who had bought stocks with borrowed money were wiped out completely.

In 1933, President Franklin D. Roosevelt took office and launched the New Deal to prevent the Great Depression which has started from October 29, 1929. The program had four major goals which are Economic Recovery, Job Creation, Investment in Public Works and Civic Uplift. In the first day of the New Deal, President Franklin Roosevelt said in his speech, “First of all, let me assert my firm belief that the only thing we have to fear is fear itself” . This states that he could change the situation around if the people believe in him. This speech gave many people confidence and they trusted him. The first goal of the New Deal is Economic Recovery. This stabilized the banks from the Stock Market crash of 1929 by giving banks a few days off. The second and third goal are Job Creation and Investment in Public Works by building projects such as parks, big buildings, museums and railroad underpass. This gave jobs for millions of workers and saved millions of lives. The last goal is Civic Uplift. This created the bones between the people and the government because men and women who worked on New Deal programs believed that they were not only serving their families, but also the society.

The Stock Market Crash played a major role in bank failures. After the crash, people were indifferent about the stability of banks, so they all began taking out their savings. Banks no longer had the currency to stay open. For those who did not take this

Next goal of FDR was to provide recovery to Americans and the government. Roosevelt created the NRA (National Recovery Act) which established and administered a system of industrial codes to control production, labor regulation, prices and trade practices in business. Even though this was declared unconstitutional by the Supreme Court during the Schechter Decision, it led to the creation of PWA and NIRA which kept money into the economy and theory of “priming the pump” to stimulate economy. Although FDR’s aim in bringing an end to the depression by pumping money into economy, agencies were ineffective led to creation of Second new deal which continued to create government involvement in economy. NLRB or Wagner Act gave workers protected right

October 24, 1929 would soon become a day that would be etched in history as Black Thursday. Although there is no one true cause or event that can take blame for the fall of our nation’s finances, the stock market crashing is indisputably the root of the problem that we now call the Great Depression. Prior to this day, the economy and national profits seemed to be on an endless spiral being pushed to the top. The occurrence and aftermath of World War One contributed to our advancement of a seemingly perfect financial state as a country and as individuals. However, after the crash, businesses began to close, including banks and other financial establishments. This, in turn, left no producers or processors for farmers and ranchers to bargain with,

When the citizens had bought all that they could buy, there was a decrease in demand. Suddenly, the industries had an excess of goods and no one to sell it to. At this point, the Fordney-McCumber Act began to cripple the economy of America. Other nations introduced high tariffs to boost their revenue and to spite the United States. Sadly for the United States, these high tariffs and low demand were instrumental in the depression that America experienced. When the stock market crashed on October 29th, 1929 or “Black Tuesday”, the united states, along with other nations were in economic turmoil and the widespread prosperity of the 1920s ended abruptly. The depression threatened people's jobs, savings, and even their homes and farms. During the heart of the depression, over one-quarter of the American population was out of work. For many Americans, these were extremely hard times. When Roosevelt was voted into office, he introduced the New Deal. While this plan tried to help the united states out of it’s isolationist rut, the second world war was the final solution. Mobilizing the economy for world war finally cured the depression. Millions of men and women joined the armed forces, and even larger numbers went to work in well-paying defence jobs.