How Did Black Tuesday Lead To The Great Depression

The Stock Market Crash of 1929 was a huge turning point for America's economy. The Stock Market was booming and no one expected it to have such a huge crash as it did. Before the crash, many people were getting rich off the market and living luxurious lives, if not luxurious middle class. The Stock Market had a big fall off and then started failing rapidly, then unemployment started to spread across the country, the unemployment rates explain how Hooverville came to be and the same with the Civilian Conservation Corps. So overall, the Stock Market Crash of 1929 led to the Great Depression, a large economic downturn, and the New Deal.

The Stock Market Crash of 1929, also known as Black Tuesday, was one of the most devastating tragedies of the

The stock market started to decline in late October of 1929, however things got even worse on Black Monday, Black Tuesday, and also Black Thursday. The article Stock Market Crash of October 1929 proves this by stating: “The U.S had been riding high on the economic growth of the 1920s. On September 3, 1929, stock prices reached a 10-year high. After that, stock prices began to slow and steady decline. Many investors scrambled to cover their losses. On October 24, investors began selling their stocks off quickly. The day quickly became known as “Black Thursday.”(Stock Market Crash of October 1929) When the economy was booming from August 1921 to September 1929, at that point everyone had too much confidence in the stock market, which then led to people putting too much trust in the market.It got to the point where people started to gamble, have an over extension on their credit, and also even the overproduction of goods, the overproduction of goods had companies in need of more and more supply and so they made prices lower on products which led to companies stocks to suffer. It only got worse after that, almost everyone was affected by the stock market crash, despite the fact that most people only thought it would affect the wealthy who made their fortunes from businesses and the stock market. At the time, politicians and citizens blamed bank brokers for deceiving investors by selling stocks at high prices.”The stock market crash crippled the American economy because not only had individual investors put their money into stocks, so did businesses. When the stock market crashes, businesses lose their money. Consumers also lost their money because many banks had invested their money without their permission or knowledge.”(Stock Market Crash of 1929) This demonstrates how everyone was carelessly putting their money into the market; therefore, when the panic