Great Depression DBQ On October 29, 1929, the stock market crashed and thousands of lives were changed and millions of dollars were lost. It came to be known as Black Tuesday, the day when the stock market dropped incredibly and life was never the same. On the 24th of October, the market dropped a little, but on the 29th, the market crashed completely. Americans were scared and in disbelief, so they rushed to the bank to claim their money before their life savings were gone forever.
The economy of the United States expanded greatly through the 1920 's reaching its climax in August 1929. By this point, production had already declined and unemployment was at an all-time high, leaving stocks to imitate their real value. During the stock market crash of 1929, better known as Black Tuesday, investors traded vast numbers of shares in a single day, causing billions of dollars to be lost and millions of investors to be eliminated. This "crash" signaled the beginning of a decade long Great Depression that would affect all Western industrialized nations; a crash that would later become known as one of the darkest, longest lasting, economic downturns in American history. People all around the world suffered greatly as personal income,
October 29, 1929, also known as Black Tuesday, is the day that led up to the Great Depression and caused despair for many Americans. With real estate being connected to the economy, whenever prices on real estate went up, the prices on stocks increased as well. Unfortunately, brokers were lending out so much money that there was more debt than the amount of currency that was circulating in the United States. When the market reached its peak it quickly took a turn and began to drop tremendously. Lead bankers arranged a meeting to come up with strategies to avoid a catastrophic event in the economy.
October 24th, 1929 the stock market crashed and the American world changed. This event is known as “Black Thursday". On Black Thursday, the banking system collapsed, and 25% of the labor force, around 12.8 million people at the time, became unemployed. “...prices and productivity levels had fallen 1/3 of their level in 1929.” With Americans having trouble finding work and the banking system struggling, people weren’t spending and saving money.
Before the Stock Market crash of 1929, America went through a decade of prosperity and social change known as the Roaring Twenties. New fads and numerous inventions emerged throughout our country. Many people bought on credit and as a result, our economy flourished. However, many Americans failed to realize this would be one of the underlying causes leading to the Great Depression. For instance, “Most people bought, but many couldn’t afford to pay the full price all at once.
The stock market crash of October 29, 1929 provided a dramatic end to an era of unprecedented, and unprecedentedly lopsided, prosperity. This disaster had been brewing for years. Different historians and economists offer different explanations for the crisis–some blame the increasingly uneven distribution of wealth and purchasing power in the 1920s, while others blame the decade’s agricultural slump or the international instability caused by World War I. In any case, the nation was woefully unprepared for the crash. For the most part, banks were unregulated and uninsured.
At this time, the world saw its lowest wages, its highest cost of living and the horrible Great Depression causing the world a decade worth of melancholy and struggle. On October 24th, 1929, the Great Depression began, investors began selling their stock quickly and in a mass amount because they were afraid of more major losses. On “Black Thursday” these investors kickstarted the Great Depression
The stock market crash on Black Tuesday set the direction of the stock market and the economy for the next decade in the way it effected everyone. In only four days, the stock market fell twenty-five percent. It lost thirty billion, or forty percent, in market value. This was amazingly ten times more than the 1929 Federal budget of the United States, and more than the United States ended up spending in World War I. By November, stock prices hit their lowest point ever in 1929 which all started on Black Tuesday. Over one hundred billion had vanished from the American economy.
The average American was normally out buying automobiles or appliances. Most purchases were credit. Next the inequalities between rich and poor. On Black Tuesday, October 29, 1929 the New York stock market crashed, triggering the Great Depression to happen. Next Herbert Hoover.
On October 29, 1929 the crash of the stock market started the Great Depression. The events leading to the crash of the stock market were as followed. Millions of people were becoming unemployed, car companies weren’t selling many cars, farms were going out of business also due to the Dust Bowl, steel production declined, construction had slowed down, and high debts were building up as consumers were using easy credit for their transactions. All of these events led up to the crash of the Wall Street Journal, Dow Jones, and the rest of the entirety of the Stock Market. Another key factor was the FED (Federal Reserve).
The Stock Market Crash On October 29th, 1929 the stock market crash occurred. Also known as “Black Tuesday” the stock market crash happened due to investors trading 16 million shares on the New York Stock Exchange in a single day. Billions of dollars were lost and this one mistake lead to the “Great Depression”. The Great Depression
It become the path to bankruptcy. That was only just the beginning of the worst depression. There was many banks had also invented many portions of their clients, saving in the stock market. These banks were forced to close when the stock market crashed. Many banks in America were closing all over the country.
Moreover, the stock market crash was caused by a number of banks failing. “One contributing factor was a massive wave of bank failures.” (Great Depression) The stock market crash had been fluctuating over time, but had not failed as much during the 1930’s.
Prior to 1929, the United States seemed unstoppable. The US was starting to splinter, with most citizens not being able to detect what was coming. Everyone was encouraged to invest in the stock market; little did Americans know that the market was about to crash. The stock market hit its lowest point on October 29, 1929, also known as Black Tuesday. In this time of need, America looked towards its President, Herbert Hoover, who unfortunately had little to offer the American people.
The Stock Market Crash in 1929 was the beginning of The Great Depression. Half of the banks in America failed because banks had invested deposits in the stock market. In 1932, 22.9% of Americans were unemployed, while those who were working had reduced hours and wages dropped 42%. Franklin D. Roosevelt became president in 1932, and during the first one hundred days, he enacted the first New Deal. His first New Deal meant to revive the economy by producing less, however later Congress declared it unconstitutional.
