On Black Thursday, The Wall Street Crash of 1929, October 24 also known as the Great Crash was terrible, it was the worse stock market crash ever. The market crash was one of the major causes that led to the Great Depression. There was a huge crowd of people trying to withdrew there life saving but couldn't. They were left with loans and debt they couldn’t pay. Two Months after the crash , stockholders had lost more than $40 billion dollars.
In October of 1929, the worst and longest depression of American History began. The Great Depression marked the end of the roaring twenties and the beginning of what would become a very long economic struggle. The depression began when the stock market crashed. Many investors dumped their stocks and ran for the banks to clean out their bank accounts because most of them bought stocks on margin and were going to lose all of their money. So many people were afraid and did this that there were many banks that ran out of money to give people and had to close.
The stock market crash was involved in the causes of the Great Depression, because it was the trigger point of it all. “In the 1920s many people wanted to put their money into stocks, so prices got higher and higher” (Lunn, Moore 235) the stock markets were very high by 1929. Although there were some people who bought the stocks, “the stock market was fuelled by borrowed cash.” (Berton 29) in other words the stock market mainly made sales from people who could not afford the stock completely and when it crashed on October 29th, 1929 “the Montreal and Toronto stock exchanges also plunged downward; 16 companies alone lost $300 million of their value” (Bolotta, Hawkes 104) also causing investors who were buying on credit, to lose their homes, businesses, cars and many of their other belongings that they put on loan to buy their shares, leaving them homeless, jobless and if having a car for transportation was a necessity, then these investors and their families had nothing at all. Therefore the stock market crash was a very significant part for the cause of the Great
This was because unemployment was rising fast (Doc. E), which meant people were spending less to the point that it caused a huge shortage of income to many companies and businesses. The stock exchange was a replacement of work, where people risked their money on what they speculated would do well (Doc. F). Since the unemployment rate was high and businesses were failing, the stock market went through a dramatic crash causing many people and companies to go bankrupt.
Great Depression The Great Depression was a global economic crisis that started in the early 1920s. This crisis leaded a depression around many nations and many young people. On October 29, 1929 there was a crash of the New York exchanges. The credit dropped rapidly after people kept on spending money, when they didn’t have any money. The stock market crashed rapidly, and took a big hit to the U.S. economy.
The Great Depression started in America with the stock market crash in October of 1929, reached world-wide status, and continued into the 1940's. The depression affected everyone's way of life, no one had money, no one had jobs, and many people were starving. It was not a fun time, and people were just trying to survive through it. Prohibition began in 1919 and continued
Then on October 1929 the stock market crashed and millions of people lost money. There was also no FDIC and all of the money in banks was lost. Then in 1933 FDR proposed the “New Deal” program. This proposed different organization made just for the purpose of helping others. Close to the end of the Great Depression, Pearl Harbor was attacked by the Japanese potentially ending the Great Depression because war industry was booming because of the need for planes, tanks, bombers, bullets, and other miscellaneous supplies.
While the Great Depression started in the United States, it had a profound impact on several powerful European countries like Germany, the United Kingdom and France. These interdependent countries were traumatically affected by the United States’ failing market as they watched their own markets plunge into chaos. London’s Evening Standard reports that unemployment rates in the United Kingdom were up to seventy percent due to the drop in carrier ship production. The economy inside the United States was just as appalling as the countries it affected. During this time, the American dollar and trade was catastrophically weak.
About a month later, the Great Depression took action on the stock market and would cause it to crash and put America and other countries around the world into a huge crisis. Hoover would attempt to fix the economy but would never be able to.
Starting in the year 1929 and lasting throughout the 1930’s, America was brought into the worst economic slump that America and the rest of the world has ever been brought into. This would soon be known as The Great Depression. What caused this depression was the crash of the stock market in 1929 and almost all of the Americans had to suffer from the stock market crash. People were without jobs, homeless, and left without nothing but their families and the clothes on their back. Some of the hardships that the Americans faced were unbearable.