The Great Depression Of The 1920s

1346 WordsNov 9, 20156 Pages
The 1920s was an economic growth period for American companies and businesses. One of the key ways of making money during this period was to buy stocks and shares. As with consumer goods such as washing machines and kitchenware’s, there was the option of buying stocks and shares on credit, which meant that purchasing shares on the stock market was available to almost everyone. Thousands of Americans rushed in to gain benefit from the share market with many using their life savings or borrowed money to take advantage of this boom. These dramatic increases in the sales of shares and stock led to over production; which in the long run, simply could not be sustained. The Wall Street stock market crashed in October 1929 and this triggered the beginning of a Depression for many nations of the developed world. The crash sent the city of New York into economic chaos and although the Great Depression began as an American problem, it was soon felt throughout most of the developed nations during the 1930s by crippling their economies (Schedvin, 1970). The Great Depression was the harshest and longest lasting economic down fall in history and as a result there were huge declines in industrial production and a massive rise in unemployment levels. Millions of investors were wiped out and lost thousands and thousands of dollars; which affected the American economy, and in turn the rest of the globe. In the years that followed the Wall Street Crash, consumer spending and investment

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