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The Stock Market Crash Of 1929: The Great Depression

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The Stock Market Crash of 1929 caused over 6 million Americans to lose their jobs and homes. Investment led factories couldn’t afford to produce products to sustain America. Jobs of employees that had been there for years were cut. Republican President, Herbert Hoover, stated to the public in 1928, “ We in America today are nearer to the final triumph over poverty than ever before in the history of any land. We shall soon, with the help of God, be in sight of the day when poverty will be banished from this nation.” However, despite his assurances matters got worse over the course of the next three years.

The Stock Market, being part of one of the biggest enterprises in the country underwent a huge downfall. At the center of the New York Stock …show more content…

The problems this country was facing continued to disintegrate over the next three years. In 1930, 4 million Americans were desperately searching for jobs. Even after the fact that these jobs couldn't be idolized for the next couple of years due to the single fact that business owners couldn't afford to hire anyone. By 1931, however, the number had risen to 6 million. In order to attempt getting the economy back on its feet, Hoover began requesting the government loan money to banks so they could take it and loan it to other companies. However, banks had other ideas for the large sums of money. Therefore, they used it to pay off their own debts. As the citizens began to panic about how they would survive they began demanding banks to give large deposits in cash. They also forced them to liquidate loans the banks couldn't afford to liquidate in order to supplement the debts of their companies. By 1933, thousands of banks had no choice but to close their doors due to insufficient amounts of money. During this period of time Hoover’s administration attempted to support failing banks with more government loans in order for the banks to loan them out and hire employees

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