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...

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