Throughout history, The Stock Market Crash of 1929 was by far the largest slump of stocks. Before this there was prosperity. The stock market risen so high, people thought if they bought on margin they would gain millions of dollars. They were wrong, because of the people who bought on margin and other minor causes started the crash.
After World War I, there was a sharp recession. This happen because of soldiers coming back to jobs and factories stopped turning war materials. At this time the president was Warren Harding. His friends took Harding's Cabinet post causing crimes such as the Teapot Dome Scandal. After this death, Calvin Coolidge took over. Many consumers wanted new goods for their needs. To buy everything they wanted they used installment buying, or buying on credit. In the early 1920's people were living in luxury. People were making profits from the stock market making the market rise. Car prices fell and many people started buying them on credit. Many people started to become deep in debt (Great Depression).
In 1920, the 19th Amendment was approved. This Amendment made women right to vote. More and more women started to work outside of house. New fashions came out. One unusual fashion was flappers. They were young women who wore short dresses and smoked. A new type of music came alive. It was called jazz. There were new singers, artists, and writers who talked about the racism of blacks (Boardmen 7-9).
When Hoover was in his term, business was the most important aspect in the United States. Businessmen were most famous and richest in United States. Much of the money they used went to their profits. Some were used to raise wages and producing but not enough. As a whole the United States were in prosperity but if you look closer there were many people who were poor and homeless. Most people were making less then 2000 dollars a year. Hoover unevenly gave help to the people. He gave most advice to the businessmen. Even though most people were poor many people thought they would never get into a depression. Granville Hicks in The Thirties was a teacher who tried making students understand the meaning of a depression, he wrote:
For a long time now I have found it difficult, when talking to college audiences about the Thirties, to make undergraduates understand what a depression was like. These boys and girls are so complete children of the Age of Affluence that they cannot conceive of joblessness, poverty, and despair on a nation-wide scale. I cite figures and tell them some of the things I saw with my own eyes, but there is nothing in their experience to help them to grasp what I am talking about (12).
So many people thought they couldn't go into a depression ever. They were wrong (Boardmen 4-7).
The stock market was going all time high until October 24, 1929. People started...