Chronicles The History Of The American Great Depression. Discusses Causes Of The Stock Market Crash. Details The Events Of Black Thursday. Describe The Effect Of The Crash On The Country.

2656 words - 11 pages

The Great Depression:A Time of Struggle, Survival and ReformI. Black ThursdayA. October 24, 1929B. First day of panicC. Investors sold stock fastII. Causes of CrashA. 1924 to Black Thursday bull market kept prices upB. People thought stock was a get rich quick schemeC. Higher wages meant investing more stockD. Banks lent money on margin1. Stocks were no longer just for the richE. No regulations on banks or stock market1. Might have prevented this type of investingIII. During the Great DepressionA. National income dropped from $87 billion to $40 billionB. Great depression struck every individualC. Economic problems created social problemsJobs were lostFamilies were brokenStudents dropped out of schoolSuicides were numerousBusinessmen sold fruit on streetPeople became homelessOver 9,000 banks failedIV. Outcomes of the DepressionA. Federal Deposit Insurance Corporation DevelopedRegulations came for banks and stock marketsFDIC started insuring individual's deposits in banksRegulated banks to prevent lending margins from stock investorsThe Great Depression: A Time of Struggle, Survival, and ReformDuring the history of the stock market in the United States, there have been many days in which the market declined numerous points. This is referred to as a market crash. One is called "Black Thursday," which marked the beginning of the Great Depressions.It was decades ago, when the roaring twenties came to a booming halt on October 24, 1929, as the stock market crashed. It is called Black Thursday because it was the first day of panic and the start of the Great Depression. Investors tried to sell stock as fast as possible on this day. Within the first twenty days of the crash, the value of stock held by investors in the United States fell thirty billion dollars.During the Great Depression, production and sale of goods rapidly declined. Employment numbers dropped drastically. Many banks and businesses were forced to close their doors. Not only were jobs and savings lost for many people, but also their homes and farms. Thousands depended upon charity to survive. During the worst part of the depression more than fifteen million people were unemployed. This figure amounted to twenty-five percent of the nation's work force. However, even the seventy-five percent of the workforce who were able to maintain or find a job were severely affected. Many experienced major wage reductions or were given only part time work. (Great)In the 1920's the economy appeared to be very strong in the U.S. and around the rest of the industrialized world. The rapid increase in industrialization, growth in economy, and technology improvements had the leading economists believing that the expansion would continue. During this booming period, wages increased substantially for most workers. As family income rose do did consumer spending.Stock prices began to rise as well. Billions of dollars were invested in the stock market as people began speculating on the rising stock prices and...

Find Another Essay On Chronicles the history of the American Great Depression. Discusses causes of the stock market crash. Details the events of Black Thursday. Describe the effect of the crash on the country.

The Stock Market Crash of 1929

915 words - 4 pages was one of the most important events in the economis history of the United States.So, this goes to show, that there are many lessons to be learned from the stock market crash of 1929. At the end of the 1920's, there were signs that the economy was headed toward a downturn, but few people heeded these warnings. When the stock market crashed in October of 1929, many investors were wiped out. Soon, the country would be plunged into the dark days of the Great Depression. If the warning signs wouldn't have been ignored like they were, the stock market crash may not have happened and our economy may not be as it is today.

Cause of the crash in stock market

2367 words - 9 pages 1. Introduction1.1 Black MondayThe 1987 stock market crash stands out as one of the most remarkable financial events of the 20th century, perhaps since the emergence of our capitalist system several centuries ago. What makes it remarkable is:1) The historic extent to which markets fell, an unprecedented 23%, and that they did so all over the world.2) Its suddenness, how it appeared out of nowhere, and only took one day to play itself out.3) Its

The Stock Market Crash of 1929

1346 words - 5 pages Black Tuesday was Tuesday, October 29, 1929. This was the day the New York Stock Exchange crashed. This was the single largest crash in the country. Black Tuesday hit Wall Street as investors traded 16 million shares in one day on the New York Stock Exchange. Black Tuesday wiped out thousands of investors and billions of dollars were lost. Black Tuesday was an event leading up to the stock market crash. As a result numerous Americans lost all to

The Stock Market Crash of 1929

1548 words - 7 pages later. People bought many goods this way and were not able to buy merchandise later on because they were in debt. Businesses did not make profits because people did not buy their goods. This caused many businesses to shut down and also induced the stocks to go down. This initially triggered the start of the Great Depression. The Stock Market crash indicates the drop in the prices of stock. This occurred in 1929 in the United States.(Chernow

The Stock Market Crash

962 words - 4 pages “There were no smiles. There were no tears either. Just the camaraderie of fellow-sufferers. Everybody wanted to tell his neighbor how much he had lost. Nobody wanted to listen. It was too repetitious a tale” (The New York Times, World History Book). The stock market crash was only one of many contributions leading up to the Great Depression. There were many economic and societal conditions that worsened throughout this time. Luckily

The Stock Market Crash Began the Great Depression

1531 words - 6 pages Investing millions a year, stock investors never thought the system would fail, but one day, it all went away. The stock market crashed leaving millions without work. The Stock Market’s Crash began the Great Depression and America would reap havoc for many years. The stock market is a great way to buy part of a company & gain or loose money depending on how the company is making money buy buying a share. “The stock market is owning a small

The Reasons Behind The Stock Market Crash of 1929

1390 words - 6 pages traders. External factors that caused fear and instability for investors and in the country triggered plummeting prices. Although the causes of the crash made it unavoidable, its aftermath was just as devastating. The stock market crash was the cause of unemployment all over the world, increase in the poverty of Canadians, changes in government, the great depression that would last throughout the 1930's, and the beginning of WWII (Aaseng, 85-89). The

The Great Depression: Causes and Events. This essay discusses the causes of the Great Depression and details this historical event. Works Cited page included

1849 words - 7 pages "destroyed confidence in business and the infallibility of the business man as the high priest of a new era". (Boardman 5) Boardman believes that the stock market crash was only a minor cause and sparked other larger causes of the Great Depression and Temin wrote that monetary forces were not a main cause of the depression. Boardman has written numerous books on American History so I am assuming that he is a reliable source of information.Harris Gaylord

Causes of the Wall Street Crash

2396 words - 10 pages Causes of the Wall Street Crash On 24 October 1929, some shareholders began to lose confidence and believing that the prices of shares could not continue to rise forever, decided to sell. A panic began, and so many shares were sold on that day that it became known as Black Thursday. The Wall Street Crash was under way. By Tuesday 29 October so many shares were being sold that the teleprinters could not keep up, share

The Stock Market Crash and The Great Depression in the US

984 words - 4 pages Stock Market Crash 25 billion dollars lost in 1 day, roughly 25% of the nations population was without a job, and the suicide rate skyrocketed. These are just a few factors that turned the Stock Market Crash of 1929 into the Great Depression, one of the longest and worst economic downturns of that time, according to 16 million shares were lost at the New York Stock Exchange, eliminating thousands of investors on October 29th

What were the causes & consequences of the Wall Street Crash?

2045 words - 8 pages American People had no jobs so they had no income and no savings because the banks failed. This resulted in starvation and people were starving and dieing on the streets.2) Both long-term and short-term causes contributed to The Wall Street Crash. The long term causes such as the economic boom of the 1920s led to a short term cause of overproduction in the car and consumer durable industries. America began becoming richer and richer during the

Similar Essays

Stock Market Crash As The Cause Of The Great Depression

1201 words - 5 pages market crash. He thought that the term panic was too frightening, especially since he believed the American people had no reason to panic from the news on Wall Street. Hoover compared the American economy to a highway and the "postcrash economic problems to a brief depression on the normally smooth and happy road to American prosperity". (Dudley 14) I am convinced that the Great Depression had a physically effect on the entire nation. Physically

Stock Market Crash & The Great Depression

2207 words - 9 pages restoration.After the devastating market crash back in 1929 and the Great Depression many wondered if it could happen again. On Aug. 25, 1987 the stock market peaked, a new all time high in the Dow, up 25.35 points to a record of 2722.42. This story was buried on page 41 of the Wall Street Journal not even worthy of a mention on page 1. In the days between October 14 & October 19, 1987, major indexes of market valuation in the US dropped 30% or

The Stock Market Crash Of 1929

1692 words - 7 pages Uncertainty And The Onset Of The Great Depression." Economic Inquiry 30.1 (1992): 154. Academic Search Complete. Web. 28 Mar. 2014. Kennedy, David M., Lizabeth Cohen, Thomas Andrew Bailey, and Thomas Andrew Bailey. The American Pageant: A History of the Republic. 12th ed. Boston: Houghton Mifflin, 2002. Print. Klein, Maury. "The Stock Market Crash Of 1929: A Review Article." Business History Review 75.2 (2001): 325. Academic Search Complete. Web. 28 Mar

The Stock Market Crash Of 1929 910 Words

910 words - 4 pages Black Monday and Black Tuesday aka October 28th and 29th. Stock prices tumbled down where people went into a frenzy to sell and people who relied on the stocks lost money miserably. “Millionaire...investors went bankrupt...instantly…” [Colombo]. Billions of dollars were lost and the Dow Jones Index decreased notably. The reasons why the Stock Market Crash of 1929 led to the Great Depression is because of the many interconnected factors that