Stock Market Crash Of 1929: The Great Depression

781 Words2 Pages
bulb-icon

Recommended: The great depression cause and effects

The stock market crash of 1929 was a devastating blow to the American Economy. It crippled the American economic system almost beyond repair. It also made Americans distrust banks for an extended period of time. Countless amounts of Americans lost their homes, jobs, and hope in this crash. Eventually, it took our country going to war to bring us out of this serious detriment. The Stock Market Crash of 1929 was arguably the leading effect in the great depression. America's bank system was "…rising even as economic conditions were not supporting the advance." "-David Seigel, What caused the great depression http://www.investopedia.com/ask/answers/042115/what-caused-stock-market-crash-1929-preceded-great-depression.asp, May 4, 2016." Our banks …show more content…

"International trade fell 30 percent as nations tried to protect their industries by raising tariffs on imported goods." "Mintz, S., & McNeil, S. (2016). Digital History. Retrieved, May 9, 2016, http://www.digitalhistory.uh.edu" Without America's consumer potential the other countries lost a huge income boost. In fact, one country responded with violence. Led by Adolf Hitler Germany sought to clear themselves of their debt by conquering. However, America's responses were different, when plans to pump money into the economy failed our escape from the depression that the stock market helped create was war. War was able to encourage more jobs in manufacturing industries and on the battlefield, it pumped money smoothly and rapidly. "World War II provided the stimulus that brought the American economy out of the Great Depression. Due to the war need, the number of unemployed workers declined by 7,050,000 between 1940 and 1943, but the number in military service rose by 8,590,000"The Economic Causes and Impacts of the Stock Market Crash of 1929 (Fall 2012) – Histopedia." The Economic Causes and Impacts of the Stock Market Crash of 1929 Histopedia N.A. Web. 10 May 2016". It can be said that Germany indirectly got us out of the hole. It filled the gap of unemployment the stock market created (which was roughly 25% of the population). In term, it could be said that this is a silver lining in a very dark

Show More
Related

  • Dust Bowl Dbq

    585 Words  | 2 Pages

    Nextly, the stock market crash also caused the economic fallout which resulted in the Great Depression. Because “Black Tuesday” wiped away billions of dollars and thousands of investors, it caused a great amount of economic fallout. When “Black Tuesday” struck Wall Street on October 29th, 1929, investors traded 16 million shares on the the New York Stock Exchange in just a day which caused billions of dollars to be lost and thousands of investors who got all their money wiped out. After the fallout of “Black Tuesday” America’s industrialized country fell into the Great Depression, which was one of the longest economic downfalls in the history of the Western industrialized world.

    Read More

  • The Stock Market In The 1920's

    944 Words  | 2 Pages

    Firstly, the stock market crash in the late 1920s was one of the main factors that contributed to the onset of the Great Depression. The common goal of many Canadians in the roaring twenties was to put behind the horrors and doubts of World War I, and focus on what was to come in the near future. However, on October 29, 1929, the Stock Market in New York City experienced one of its worst days of all time. The catastrophic impact that the stock market crash had was enough to shift the world in the direction of an economic downfall. The rapid expansion of the 1920 stock market caused the market to hit an all-time high.

    Read More

  • The Major Causes Of The Stock Market Crash Of 1929

    1130 Words  | 3 Pages

    It has been said that every good thing must arrive at an end. On account of the Roaring Twenties that end came suddenly and startlingly. It is simple for one to think back upon the monetary circumstance that prompt the accident and disparagement the specialists for not seeing the indications of a potential calamity. Be that as it may, it was not all that simple for them to see such an accident coming. The 1920 's were a blasting decade and stock costs appeared to be at an unfaltering move for an apparently interminable ascent. Numerous elements can be ascribed to the reason for the accident however nobody element can be singled out as the lone reason. The real reasons for the share trading system accident of 1929

    Read More

  • The Stock Market Crash of 1929

    1275 Words  | 3 Pages

    The United States signaled a new era after the end of World War I. It was an era of hopefulness when many people invested their money that was under the mattresses at home or in the bank into the stock market. People migrated to the prosperous cities with the hopes of finding much better life. In the 1920s, the stock market reputation did not appear to be a risky investment, until 1929.First noticeable in 1925, the stock market prices began to rise as more people invested their money. During 1925 and 1926, the stock prices vacillated but in 1927, it had an upward trend. The stock market boom had started by 1928. The stock market was no longer a long-term investment because the boom changed the investor’s way of thinking (“The Stock Market Crash of 1929”). The Stock Market Crash of 1929 was a mass hysteria because of people investing without any prior knowledge and the after effects that eventually led to the Great Depression.

    Read More

  • Cinderella Man

    696 Words  | 2 Pages

    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 believed that in the first day of the crash almost a billion dollars were lost, this took a large amount out of the pocket of the common man. Without this money people were unable to purchase consumer goods, which the United States economy was based on. Another way the Crash contributed to the depression was the loss of confidence in the market. When t...

    Read More

  • The Great Depression

    562 Words  | 2 Pages

    The fundamental weakness and contradictions of the world economy was the actual cause of the Great Depression. The international economy was in shambles because of the cost of war and the American economy was indirectly damaged by this; however, October 29, 1929 is the official beginning of the Great Depression because of the stock market crash of 1929. Paper fortunes had vanished but money was the foundation of American life. People usually took loans from banks so they could start businesses but because of the Depression, they took out loans so they would have e...

    Read More

  • The Great Depression

    1724 Words  | 4 Pages

    The causes and far-reaching effects of The Great Depression are examined. Discussion includes its impact on both American cultures and nations around the world. The role of World War II and the New Deal in overcoming the Depression are explored.

    Read More

  • The Great Depression

    770 Words  | 2 Pages

    The beginning of World War II would prove to be the factor that directed America out of the Depression. How ironic, that such a horrifying event could spur an economic rejuvenation.

    Read More

  • The Great Depression in "Cinderella Man"

    1586 Words  | 4 Pages

    The stock market crash of 1929 was the primary event that led to the collapse of stability in the nation and ultimately paved the road to the Great Depression. The crash was a wide range of causes that varied throughout the prosperous times of the 1920’s. There were consumers buying on margin, too much faith in businesses and government, and most felt there were large expansions in the stock market. Because of all these positive views that the people of the American society possessed, people hardly looked at the crises in front of them.... ...

    Read More

  • Roaring Twenties Essay

    978 Words  | 2 Pages

    By 1929, the U.S. economy was in serious trouble despite the soaring profits in the stock market. Since the end of WWI in 1918, farm prices had dropped about 40% below their pre-war level. Farm profits fell so low that many farmers could not pay their debts to the banks; in turn this caused about 550 banks to go out of business. The nations illusion of unending prosperity was shattered on Oct. 24 1929. Worried investors who had bought stock on credit began to sell it. A panic developed, and on October 29, stockholders sold a record 16,410,030 share. By mid-November, stock prices had plunged about 40%. The stock market crash led to the Great Depression, the worst depression in the nation’s history (until…2014 ☺). It was a terrible price to pay for the false sense of prosperity and national well being of the Roaring Twenties.

    Read More

  • America, the Great Depression, and The Cinderella Man

    1787 Words  | 4 Pages

    In October 1929, the United States stock market crashed due to panic selling. This crash started a rippling effect that contributed to a worldwide economic crisis called the Great Depression. This crash was such a shock because of the economic expansion of the 1920’s when the Dow Jones average reached an all-time high of three hundred eighty one. The year 1928 was a time of optimism and the stock market had become a place where everyday people truly believed that they could become rich. People everywhere were talking about the market and newspapers were reporting stories of ordinary people such as chauffeurs, maids, and teachers making millions off the stock market.

    Read More

  • Jim Braddock and The Great Depression

    1165 Words  | 3 Pages

    The stock market crash had a colossal contribution to the Great Depression. The stock market crash rolled in after the golden time in the 1920’s; with it came the Great Depression trailing right behind. The stock market crash was caused by people investing in stocks with money they did not have, this was called buying on margin. When the stocks fell everyone lost an enormous amount of money that they had invested into the stocks. The stock market was the main cause that forced American into the Great Depression. The stocks were a towering success until the collapse; the crash forced many Americans into poverty because they had to sell almost everything they had to repa...

    Read More

  • 1929 Stock Market Crash

    1392 Words  | 3 Pages

    In early 1928 the Dow Jones Average went from a low of 191 early in the year, to a high of 300 in December of 1928 and peaked at 381 in September of 1929. (1929…) It was anticipated that the increases in earnings and dividends would continue. (1929…) The price to earnings ratings rose from 10 to 12 to 20 and higher for the market’s favorite stocks. (1929…) Observers believed that stock market prices in the first 6 months of 1929 were high, while others saw them to be cheap. (1929…) On October 3rd, the Dow Jones Average began to drop, declining through the week of October 14th. (1929…)

    Read More

  • The Wall Street Crash and The Great Depression

    534 Words  | 2 Pages

    The Wall Street Crash and The Great Depression When the stock market collapsed on Wall Street on Tuesday, October 29, 1929, it sent financial markets worldwide into a tailspin with disastrous effects of the sand. The German economy was especially vulnerable since It was built out of foreign capital, mostly loans from America and was dependent on foreign trade. When those loans suddenly came due and when the world market for German exports dried up, the well oiled German industrial machinery quickly ground to a halt. As production levels fell, German workers were laid off. Along with this, banks failed throughout Germany.

    Read More

  • Stock Market Crash Essay

    679 Words  | 2 Pages

    The stock market crash of 1929 was a major turning point in history. It was an event that struck The United States hard, effecting both political and social groups. During the Stock Market Crash; banks were forced to shut down, people lost their entire savings they had in the banks, and upon losing their savings from the banks they eventually lost their businesses. Therefore causing a downward spiral in the economy of The United States and creating havoc. The Stock Market Crash of 1929 was a time sorrow due to loss of trust in the banks.

    Read More

More about Stock Market Crash Of 1929: The Great Depression

Open Document