The Stock Market Crash Of 1929

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The Stock Market Crash of 1929 “started” on the 24th of October 1929 with 12’894’650 shares being traded; this is the same day that Richard Whitney went to the stock exchange and bought targeted shares in an attempt to stabilize the stock market. As will be made evident, this did not work. In fact, an even worse day, dubbed “Black Tuesday”, occurred on the 29th of October where 16’410’030 shares were traded. From the week of October 23rd to 31st the panic settled in and a total of 70.8 million shares were traded. This crisis, beginning in the United States, rippled across the whole world given that it was interconnected through the gold standard. The Dow Jones Industrial Average had gone from a high of 386 points to a low of 40.56 points by 1932. In fact, according to Dietmar Rothermund’s study of the global impact of the economic crisis, “all major factors contributing to the depression can be traced back to the United States of America”. As a matter of a fact, the historic loss of 30% of the United States’ real GDP from 1929 to 1933 was the wake up call that the economy needs to be controlled. This loss is what led to unprecedented levels of government intervention and the reshaping of Western Civilization economics with the New Deal and following similar regulations.

The Stock Market Crash led to pioneering changes in many aspects of the American government and society; one of those changes was the discontinued use of the gold standard. The gold standard linked the

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