The Great Depression was a time period in the United States between 1929 and 1932 caused by the stock market crash on October 29, 1929. It was a time of great sorrow and loss for many people across the U.S. From the start of the Great Depression, to the long anticipated ending, there were many effects on the people and the economy.
There are many reasons for the stock market crash of 1929. First, it is important to understand what a good stock market looks like before the crash. The U.S. was exporting many goods to Europe to help them rebuild after the long, torturous WWI. The battle’s occurred on European soil, so they experience massive destruction throughout the land. This trading between the U.S. and Europe really helped the U.S.’s economy
…show more content…
The economic growth caused people to think that investing in the market is just a hobby. The people in this time had thought that anyone could make money in the market. People at this time were careless about how they invested their money convinced that it was “easy money”. This thought process caused the general population across the U.S. to plunge into the market. Some people even invested money that they did not have, thinking that they would pay their debt later when they gained money. An effect of the general population investing in the market was that it caused oversupply in many companies. The companies would acquire this money from investors and have too much of it, creating oversupply of many goods. These businesses were forced to dump their products in mass and at a loss. While this was happening, stocks still continued to rise, giving companies even more money that they did not know what to do with (“What caused”). The stock market bubble finally burst on October 24, 1929. On that day, investors began dumping shares in the mass, and it is known as “Black Thursday”. A record of 12.9 million shares was traded that day, making many people terrified, creating a wave of panic. This happened again on October 29, 1929 as some 16 million shares were traded. This date is acknowledged as “Black Tuesday”, and caused another wave of panic (“STOCK MARKET CRASH OF 1929”). Truly, these days will be remembered
The Great Crash also known as Stock market crash of 1929, happened in 1929 which was one of the biggest and important history of America. During this time in late October the stock market of the country crashed which lead to the beginning of great depression, and it has lasted for 10 years. Many countries got affected due to the great crash, especially all Western industrialized countries. “Black Tuesday (October 29), in which stock prices collapsed completely and 16,410,030 shares were traded on the New York Stock Exchange in a single day.” (“Stock”). After the crash, the country had tried to cope up from the loss, but it still continued to drop. “By 1932 stocks were worth only about 20 percent of their value in the summer of 1929. (“Stock”). Due to this depression, nearly half of the banks failed, businessman faced bankrupts and people have lost their
The stock market crash of 1929, additionally called the Great Crash, was a sharp decrease in U.S. stock exchange values in 1929 that added to the Great Depression of the 1930s. The market accident was a consequence of various economic imbalances and structural failings (Pettinger). In the 1920s, there was a fast development in bank credit and advances. Energized by the quality of the economy, individuals felt the share
The Great Depression was an economic downturn event that took place in history during the western industrialization world. The United States of America began the Great Depression soon after the stock market crash of October 1929. Furthermore, it sent the Wall Street into a panic and wiped out millions of investors.
In October 27, 1929, the United States stock market crashed and created a ripple effect of unfortunate events. This economic downfall that the U.S. economy faced was one never experienced by American citizens. The crash immediately stunned Wall Street and wiped out millions of investors. As the years passed the Great Depression only worsened. No one knew how to react to this situation and fear began to over run the country.
An economic upheaval, a change of life, a mark in the history books- the Great Depression not only affected America’s economy but also showed the world how truly interconnected all nations’ economies are. The luxurious lives of the Roaring Twenties were turned upside down by the Great Depression. The origins of the Great Depression stem from the American economic policy with Europe, the bank failures, and the stock market crash of 1929.
In October 1929, there was also Black Tuesday, when 16 million shares were traded on the New York Stock Exchange. Exchanges in a single day by investors. This all signaled the beginning of the Great Depression. On October 8th, 1929, the Dow Jones industrial average dropped nearly 13% (Richardson, Federal Reserve history). The 20s saw an unsustainable rate of increase in share values in the years leading up to the crash, which is why it occurred, causing it to get to the point where it is no longer sustainable, which the 1920’s decisions and lifestyle really contributed to the cause of the 1929 stock market crash.
The Great Depression was one of the crucial economic events in world history that it affected everyone. This was a time period when many people were out of work and business was poor. The Great Depression began on October 29, 1929, when the stock market crashed in the United States. This economic disaster impacted humans in the worst way imaginable. Everyone was surrounded by despair from all sides.
The Great Depression was a horrible time in the United States as we have learned through years of history classes. Americans struggled physically and mentally because of the depression. Suicide and admitting to mental hospitals, strain marriages increased during these times. The Great depression affected the relation between ethnic groups; increased competition for jobs which increased hostility and violence;african americans were killed; mexican americans voluntarily left country or were deported.
It is hard to imagine life without simple things such as a house, entertainment, or even food. Yet these things were scarce as a result of the downward economic spiral called the Great Depression. People went without many resources, going hungry and homeless. The struggle became worsened, to where a new president vowed to make changes about the Depression. Americans were negatively impacted during this time, losing jobs, possessions, money, and a home, leaving many with nothing.
Aidan Knipfel Silver DC Composition 17 March 2024 Great Depression The Great Depression started with a major event that shook the entire nation known as the Stock Market Crash. This crash hurt many businesses and individuals, causing them to lose significant amounts of money. This caused widespread unemployment and people struggled to afford their necessities, and some people even lost their homes. The Stock Market Crash caused the Great Depression, because businesses and people lost money.
During the Great Depression, thirteen million Americans lost their jobs, one million families lost their farms, 273,000 families were evicted from their homes, and four thousand banks closed (“The Great Depression Facts”).The stock market crashed on October 29,1929. This caused an abrupt panic all throughout Wall Street. Due to this event, investors were forced to quickly withdraw their shares.This extreme loss lead to an even greater economic collapse. Ultimately, this caused citizens to flood their nearby banks with distress. The surprising amount of withdrawals made banks begin to lose the money that they had (“The Great Depression”). The Great Depression brought a downfall to the economy, made the citizens of the US feel hopeless, and challenged American families.
The Great Depression started in 1929 and lasted up until 1939. It happens to be the worst economic downturn for the United States and the the rest of the world. It caused companies and corporations to eventually go bankrupt as well as workers to be laid off. Another effect of The Great Depression is that factory production was reduced, and the banks started to shut down. In the lowest point of The Great Depression in 1933 nearly 15 million workers in America were unemployed and one half of the banks started shutting down.
The Great Depression was a terrible event during the 1930’s. The Great Depression went on for ten years. It began in 1929 and ended in 1939. World War II then began. The Great Depression was caused by number of weaknesses in the economy.The Great Depression had many effects on people living through it.
economy, people began buying stocks on the margin. They would borrow most of the stock’s price from a stockbroker and only pay a little bit of the price. If the stock prices kept rising, this system would work well, but if the prices fell, people could not pay the loan back. Near the end of the 1929 year, prices were too high, so people wanted to sell their stocks. They thought the prices would lower soon. Stock prices did go lower and people were not buying. They all wanted to sell their stocks. Prices went even lower on October 29, where 16 million stocks were sold. This caused the collapse of the market.
During the 1920's millions of Americans began investing in stocks for the first time. They heard about how rich people were getting by investing so they all decided to do it. Many new investors entered the stock market using borrowed money. Stock market prices rose steadily as inflated market demand outpaced increases in the capital value of businesses. Investors began to realize that a large imbalance existed between stock prices and the amount of money needed to back them up, and began to sell. On October 29, 1929, great numbers of people tried to sell their stocks all at once. This created chaos in the accounting of stocks and for brokers. The New York Stock Exchange and other exchanges prices dropped so dramatically that this event became known as the crash of 1929. Millions of investors lost their savings in the crash and many were deeply in debt since