Stock Market Crash Dbq

There is no doubt that the stock market crash contributed to the great depression, but how? One way that the Crash contributed to the depression was the loss of money it caused to the average man. It is

The United States entered one of the most devastating economic periods in its history after the stock market crash of 1929. The massive damage done to the quality of life of the average American during this time, known as the Great Depression, prompted a fundamental change in the attitude of the nation. The most notable change was a shift in public belief about what type of President would best serve the struggling nation. The election of Franklin D. Roosevelt completely reversed the trend of Presidents that pursued policies focused around benefitting businesses and the wealthy. Whereas leaders before him held fast in their support of big businesses, even to the point of ignoring the harm they had brought to the country, Roosevelt focused his

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

Many people believe the Stock Market crash and the Great Depression are one in the same. In the nineteen twenties the Dow Jones went from sixty to four hundred. People became instant millionaires. Trading became America’s favorite pastime and a quick way to get rich. There were Americans mortgaging their home and investing their life savings in stock such as ford. However, there were many fake companies that formed to deceive the inexperience investors. Many investors did not believe that a crash was possible; they all thought the market would always go up.

The 1929 Stock Market Crash "We’d like to thank you, Herbert Hoover/ For really showing us the way/ You dirty rat, you Bureaucrat, you/ Made us what we are today (www.stlyrics.com)." These lyrics from the musical Annie place the blame for the 1929 Stock Market Crash solely on the then former president Herbert Hoover. The truth of the matter is that placing the blame for the Stock Market Crash on Mr. Hoover is very unfair. Herbert Hoover was only one of many causes of the Stock Market Crash. It is easy to try to place the blame for one of the most destructive events in the history of the American economy on one person, but the real causes lie in the rampant speculation, the lack of regulation of the stock market, and the questionable ethics of many of the companies and brokers that were involved in the market. Although the 1929 Stock Market Crash is generally blamed on a few scapegoats, it was actually caused by a multitude of factors, which makes finding a scapegoat impossible.

There were many causes of the Great Depression (need help on the first sentence). Yes, the stock market crash was a main reason of the Depression, but it actually began long before that, with the Roaring 20’s. With such a large disparity between the rich and the poor, the overproduction of goods (too much too quickly), and people racing to buy stocks, it was only fitting that it would soon come to an end. Before it actually crashed, the stock market played an important factor leading up to the Great Depression as well. As people were borrowing money to pay for stocks (on margin), they became more and more in debt, and caused the stock market crash to be a huge surprise to them. During the summer of 1929, an “ordinary recession” occurred,

In 1929, the stock market crashed, and afterward the Great Depression began in the United States. The stock market was not the only cause of the Great Depression, there were social, political, and economic factors throughout the 1920s that were responsible for the economic downfall. According to Eric Foner, author of Give Me Liberty: An American History, the 1920s was the beginning of American consumerism, which is a social factor that led up to the Great Depression (783). Foner comments, “consumer goods of all kinds proliferated” (783).

In 1929 the stock market crashes due to an unstable economy, over speculation and Government policies. Many people think that the stock crash was to blame for the Great Depression but that is not correct. Both the crash and depression were the result of problems with the economy that were still underneath society 's minds. The depression affected people in a series of ways: poverty is spreading causing farm distress, unemployment, health, family stresses and unfortunately, discrimination increases. America tended to blame Hoover for the depression and all the problems. When the 1932 election came people weren’t very fond of Hoover, but Roosevelt on the other hand introduced Happy Days and everyone loved that idea.

It is easy and popular to blame the stock market crash as the single cause of the Great Depression. The truth is far more complex. A healthy economy can rebound from such a hit. Faulty systematic processes sent the nation crashing down in distress. First, American companies earned huge profits during the 1920s and reinvested much of those funds into expanding their companies, instead of their manpower. By 1929, companies had expanded to the bursting point; workers could no longer continue to maintain further expansion, so a slowdown was inevitable. While corporate profits skyrocketed, workers' wages increased only incrementally, which

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.

Many people think that the Great Depression was caused solely by the stock market crash. Anybody who tells you this probably didn’t pass U.S. History in high school. The fact is, the Great Depression was caused many different factors. Four of which were overproduction, uneven distribution of wealth, protective tariffs, and the four “sick industries” of the 1920’s.

Many people speculate that the stock market crash of 1929 was the main cause of The Great Depression. In fact, The Great Depression was caused by a series of factors, and the effects of the depression were felt for many years after the stock market crash of 1929. By looking at the stock market crash of 1929, bank failures, reduction of purchasing, American economic policy with Europe, and drought conditions, it becomes apparent that The Great Depression was caused by more than just the stock market crash. The effects were detrimental beyond the financial crisis experienced during this time period.

On October 29, 1929 the United States Stock Market Crashed. It was devastating. About 16 Billion U.S. dollars went down the drain. I live in New York with my 2 brothers and sister: Jack, Daniel, and Maggie. We use to live in a pretty upscale apartment. However,The depression hit us like a train. My dad, Tom was laid off at his law firm right after the stock market crashed. He was desperate for money so he began work in a textile factory. Unemployment rates skyrocketed from a mere 3% to 25%! My mom, Jean, use to be a stay at home mom, but now works in a clothing sweatshop to put food on the table. With such little pay we were forced to move out of our beautiful apartment into a crummy run-down tenement. Shortly after, my father lost his job at the Textile factory. It 's 1931 right now and he hasn 't worked since. We couldn’t even depend upon our savings. Thousands upon thousands of banks were closed down, so we lost all of our money in the bank. My widowed aunt Celeste has also come to live with us. Her husband committed suicide after losing all his money when the Stock Market collapsed. My mom had to get a second job and make ends meet. But it just not enough. We were evicted from our tiny one bedroom tenement. We now reside in a Hooverville. We barely have enough money to put a little food on the table. My little sister has asthma and her medication costs a lot so she 's been sick lately. I mainly blame our financial situation on margin buying and President Hoover.

While the Crash of 1929 can be viewed as unavoidable, due to the boom and bust nature of economics, the decades of decadence and capitalist corruption leading to the crash would indicate otherwise. In the years prior to the Crash of 1929 the stock market was completely uncontrolled, leaving the market open to manipulation. Large stock purchases could be made with little money down and easy credit was made available to the average citizen. Many people thought the stock market would rise without end and regularly engage in risky stock speculations.

The stock market crash of 1929 directly caused the Great Depression; however, many factors contributed to the fall. No one factor of combination of factors can be said to be the predominant cause of the stock market crash. Economics is not an exact science. It contains plenty of room for fluctuation (Nardo 36). The public was quick to blame the government. Herbert Hoover, President during the stock market crash, offered three main explanations for the crash: a slump in stock speculations, economics outside the United States of America, and World War I. The World War I theory was widely criticized and Senator Carter Glass thought it was no more the cause of the crash than the “war of the Phoenicians or the conquest of Gaul by Caesar.” (Nardo 36). The excuse that it was out of the United States’ control might have been accurate though. While the Great Depression was a global event, not all countries entered it at the same time. Eight countries - Canada, Argentine, Brazil, Germany, Finland, Poland, Australia, and the Netherlands Indies – entered the depression before the USA. However, nearly twice that number