Everybody wanted to be part of it. Not till October 1929 when the stock market crashed. As more people invested in the stock market they hope to make a quick profit on a speculative rise in stocks (doc 5). According to doc 5 “stock prices were forced up by competitive bidding rather than by any fundamental improvement in business”. This meant people would invest in a company and when the company rises they would sell for profit.
Leuchtenberg sad, “There was no single cause of the crash and ensuing depression,” [Doc2]. Many things as stated earlier contributed to the crash, such as overexpansion of credit, goods, industries and rising rates of unemployment. Many Americans saw the Stock Market as an easy way to create wealth by buying stocks cheap, usually at a margin, and selling for a higher price, hopeful to profit. Buying on margin was the act of paying some money on a stock, but loaning the rest from a bank who expected would be paid back when profit was made. Stocks became more expensive to the point where nobody wanted to buy them because of their extreme price.
The place to go get rich they called it. Wall Street had the biggest boom in the 1920s, which was influenced by the United States successful venture of World War One. This prosperity seemed to have no end but on October 29, 1929 (now known as black Tuesday) the American Stock Market crashed. This thus plunged the United States into the deepest economic depression the world had yet to witness. This depression began due to the stock market crash but other reasons such as the massive income inequality and the new American system of instalment buying set the course with ultimately lead the United States to The Great Depression.
The great depression in the US, which began in 1929, and ended in 1938 was caused by many different things all happening at the same time in the economy. The wall street crash in October 1929 was one of the main causes, when the stock markets crashed. This was caused by many things, but the main reason for it was a deflation (which is an event where the general level of prices in an economy are reduced) On October 24th (black Thursday), share prices dropped by 14 billion dollars in a day, and more than 30 billion in a week. This forced many of the banks to close, due to them investing their client’s savings in the stock market.
In the wake of Black Tuesday, America and the industrialized Western world rapidly spiraled downward into the prolonged economic period of financial distress known as the Great Depression. Rather than the market collapsing as a result of one factor, the Stock Market Crash of 1929, and consequently, the Great Depression came to fruition due to several factors in conjunction. From 1921 to 1929, the U.S. stock market underwent rapid expansion, reaching its peak in September 1929. Prominent economists presumed that the economy and stocks would continue to remain in prime condition.
On October 29, 1929, the stock market crashed, which led to a large economic depression and dramatically dropped in stock prices. This depression caused people to get scared and not buy any
People trusted the “Buy now, Pay later” idea, so much so that they bought so much, and didn't have enough money to pay later. The distribution in income was only favorable for 40% of the entire population, and the citizens were gambling on their stock investments and thought nothing could go wrong. Imagine it is October 28, 1929, living a lavish lifestyle in your mansion, only to have the all of the dreams that came true crushed the very next
The crash was caused by people doing more and more installment buying and they did not have the money to pay for everything they bought so basically everybody stopped buying the things they wanted at the same time because they all had the realization that they had no money. As document 5 titled A History of the American People it is stated that, “The final development that set the stage for the collapse of American prosperity in 1929 was the speculative boom that developed with increasing intensity. . . more investors put their money into securities(stocks). . .” This is supporting the fact that when the stock market crashed people lost more than they ever thought they
After the stock market crashed, the country and its people lost everything and became greatly in debt. The United States stock market took a huge downfall when it crashed on October 27, 1929 (Leuchtenburg). People who
The stock market crash was one of the major causes of the Great Depression. During the Great Depression, the American people were struggling. Franklin Delano Roosevelt, the President at the time, had a plan to help the people. He called his plan the New Deal. Ultimately, the New Deal was successful
America had experienced other depressions or “panics,” but none were like the Great Depression. The Great Depression began on October 29, 1929, Black Tuesday, with the stock market crashing. Most people believe that the cause of the Great Depression was the stock market crashing. Although that is what triggered the Great Depression there were many underlying causes that lead up to the stock market crashing. Some of the underlying causes include under-consumption/over-production, uneven distribution of wealth, loose banking and corporate regulations, tariffs policies, and the stock market.
In 1929, the U.S. was hit with the worst economic crisis in the history of the country, the Great Depression. The Great Depression left millions of people unemployed and cost millions their life's savings. The Depression lasted for ten long years for the American people. Since the Great Depression ended, people have studied it, trying to figure out what happened that started it all. The problem was, in fact, the poor economic habits of the people at the time, such as speculation, income maldistribution, and overproduction.
In response to question 1, the major cause that started the Great Depression was foreign policy toward trade. High tariffs were place on foreign imports which in turn caused other countries to do the same for American imports. This in turn reduced the demand for American goods, resulting in over production, dropping prices, and the inability to pay off dept for the equipment needed for the previous high demand of goods. The downward spiral of cause and effect led to workers being laid off to cut cost for lower demand products, farmers foreclosing due to low demand for crops, banks closing due to unemployed customers trying to withdraw savings, inflated and fraudulent stock market practices, and decreasing confidence in the capitalist system.
There began to be a gradual decline in prices and the stock market ruptured. On October 24, 1929, the infamous “Black Thursday” took place, where stock holders went on a panic selling spree. Things then went from bad to worse, stock prices went down 33 percent. People stopped purchasing goods and business investments decreased after the crash. In the fall of 1930, the first of four major waves
Nishat kazi (Muniya) 11th grade The Great Depression was one of the worst downturn of economy in the history that took place during the 1930s. It had a catastrophic effect in countries on both rich and poor. Though there are a lot of causes behind the Great Depression,the main three causes were-1.Bank failure 2.Stock market crash 3.laissez faire.
