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The Great Depression Essay

2599 words - 11 pages

In the late 1920s, the United States was said to have one of the most prestigious economies in the world. Herbert Hoover reigned as president, and was assured that the American economy would continue to prosper, and eventually obliterate poverty in the U.S. However, the stock market crash in 1929 forever changed Hoover’s plans. 1929 to 1939 was one of the most devastating decades in American history. This time period, known as The Great Depression, was a 10-year national crisis that led the country to economic depression and mass unemployment (The Great Depression). “It ranked as the worst and longest period of high unemployment and low business activity in the 1900s” (Mitchener). Many ...view middle of the document...

Demand for goods and new products led to an increase in business and profits (Mitchener). The stock market was booming, and people became eager to buy into the system. Record level stock prices soared to extreme heights that many had never thought possible. Stock markets, such as, Dow Jones & Company played a crucial role in the rise and fall of the stock market system in the late 1920s. The creation of the Dow Jones Industrial Average added to the success of the Dow Jones stock market. It is believed that the crash of the stock market was the first influence that sent the U.S. into The Great Depression. “The Wall Street Crash was the U.S. Stock Market crash of October 29, 1929, which precipitated a world-wide collapse of share values and triggered The Great Depression” (Wa).
Dow Jones & Company is a Wall Street corporation that was formed in 1882 by Charles Dow, Edward Jones, and Charles Bergstresser. Dow Jones & Company is a financial news publishing firm (Dow Jones Averages). Dow Jones & Company has been a very successful business for a substantial number of years. This New York corporation is responsible for the creation of a variety of news products, including the Wall Street Journal. The Wall Street Journal is a daily newspaper that consists of breaking news, business and financial information, and numerous other contents. The first edition of the WJS was published on July 8, 1889, (About Us). Since then, the paper has continued to grow and elevate, and is now the best-selling paper in the United States, making and selling more the 2.3 million papers throughout the country daily.
In 1896, Charles Dow created the Dow Jones Industrial Average, which is one of three averages that the Dow Jones & Company calculates. The Dow Jones Averages are “statistics that show the price trends of stocks traded in the United States” (Dow Jones Averages). DJIA is the oldest and most widely monitored stock market in the U.S. Dow Jones computes the averages ever few seconds of every business day (Dow Jones averages). Dow Jones & Company oversees the financial progression to 30 stocks. A stock is a “right of ownership in a corporation” (Sobel) These stocks are well known businesses around the United States. Verizon Communications Inc, McDonald’s Corp, Wal-Mart Stores, and Walt Disney Company are all constituents of the Dow Jones Industrial Average (About Us).
The Dow Jones & Company is one of the world’s most known stock markets. However, the business hasn’t always been as productive as it is today. Dow Jones had only 12 constituents when it first began. In 1916 the company was expanded to 20 stocks, and then again in 1928 when it was raised to 30 stocks, and has remained at that number today (About Us.).
The Dow Jones & Company and other stock markets continued to get better throughout the early 1900s, and by the 1920s the stock prices escalated to record amounts. Stockholders were becoming millionaires in days. In a matter of 4 years, the stock market...

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