During the 1920'S there was a elevated, rapid fierce increase in bank credit and loans. Motivated by the strong, striving economic climate people felt that the Stock Market was a sure winner.
After World War One there was unlimited prosperity for the
Americans. As the economy expanded so did the Stock Prices.
A multitude of Americans had invested their wealth in the Stock
Market produced from the shares. A minimal amount of money was required to join this party of wealth. Investors were allowed to buy their stock produced from the shares.A minimal amount of money was required to join this party of wealth. Invested were allowed to buy their stock on margin. Further Stock was purchased by using the value of their existing stock itself
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Through various fluctuations by 1930 the values of the Shares had
plummeted by 90%.The wheels started coming furiously apart
in 1929 ,24th of October was the dawn of BLACK THURSDAY of October the dawn of BLACK THURSDAY. The start of many.
This was a mere tremor that shook the bright alluring waters of Wall Street. The tsunami was yet to come and it sure did.
On the 29th of October Wall Street was hit with a sharp piercing price fall by 40 billion dollars in a single day. This monster tsunami not only collapsed the structure of Wall Street but washed clean the Investors Shares which left them barren, bankrupt, homeless and jobless. It was a Black Plaque that targeted the
Investors and shareholders. The Great Depression fell on America like a plaque with no escape. America was in the pit of the
Greatest economic slump in history. Unemployment increased to astronomical figures in excess of 13 million.Hope was bleak.
A multitude of people lived in a destitute state on the brink of famine. Many people lived in shacks made from items of scraps metal and boxes. People travelled the country
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Many Americans needed a basic amount of 2000 dollars per year to support their families but about 60% of the US families earned less than this. The rich Americans could afford to lose money on Wall Street but the larger population could not afford this catastrophe. This further had a ripple effect negatively on the crippling economy.
People were at a disadvantage and could not afford to purchase consumer products. This resulted in a massive decline in shopping purchases, shops closed down and factories did not have the need to employ people to make products that were not going to be sold .This resulted in a major unemployment problem issue.
By the winter of 1932 the depression was at its worst.
The effects of the Wall Street crash left 12 million roughly people out of work,12000 people became unemployed daily,
20000 companies became bankrupt,1616 banks had gone bankrupt and 1 in every farmers were evicted. 23000 people committed suicide in 1 year.There was no benefit structure for the unemployed. Charities such as the Salvation Army assisted with free food and shelter. There were reports of death through