The Crisis Of The 1929 Stock Market Crash

1378 Words6 Pages
In July 2007, the United States were kicked off by the subprime mortgage crisis, emphasized by the banking and financial crisis of 2008. The global economic crisis called the Great Recession followed in 2008. It has been famously regarded as preventable by the memory of the Great Depression in the late twenties. The stock market crash of “Black Thursday” on the 24th of October 1929 marked the end of the “Roaring Twenties”, temporary period of prosperity and endless hope in the United States. But this hope did not last long as the violent crisis suddenly questioned the good sense of capitalism. President Hoover (1929-1933) at that time chose a liberal alternative to disengage the state from the U.S. economy. This crisis has been echoed in countries and immerged the global economy into a deep recession. This essay will explain that the grassroots of the 1929 stock market crash, as well as the hold to the international gold standard and international trade and lending have brought the world into a worldwide economic depression. First of all, Great Depression takes its roots directly from the United States’ 1929 stock market crash that characterized a downturn in the American economy. On Black Thursday, the U.S. Dow Jones Industrial Average collapsed by 11 per cent in one day, kicking off three years of decline for the U.S. stock market. It was the deepest crisis in the history of capitalism, and buried the country in unemployment. Europe had just revived economically after
Open Document