.
Wednesday, September 18, 2019
how the stock market crashed Essay -- essays research papers
Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth, banking problem, industrial power houses and agricultural depression which ultimately lead to the infamous Stock Market Crash of 1929. The â€Å"roaring twenties†was an era when our country prospered greatly. The rapid increase in industrialization was fueling growth in the economy, and technology improvements had the leading economists living that the uprise would continue. During this boom period, wages increased along with consumer spending and stock prices began to rise as well. Billions of dollars were invested in the stock market as people began speculation on the rising stock prices and buying on margin.               On Thursday, October 24, 1929, the bottom began to fall out. Prices dropped continually as more and more investors tried to sell their holdings. By the end of the day, the New York Stock Exchange had lost four billion dollars, and it took the exchange clerks until five o’clock in the morning the next day to clear all the transactions (Hicks 9) Following Monday the realization of what had happened began to sink in, and a full-blown panic set in. Thousands of investors-- many of them ordinary working people, not serious â€Å"players -- were financially ruined. by the end of the year stock values had dropped by fifteen billion dollars (McElvaine 45).      Many of the banks which had speculated heavily with their deposits were wiped out by the falling prices, and these bank failures sparked run on the banking system. Each failed bank, factory, business, and investor contributed to the downward spiral that would drag the world into the Great Depression (Hicks 22).      During the â€Å"roaring twenties†which is commonly known as the Jazz Age, their was an obvious attitude that was for living for the moment. â€Å"Americans in the Roaring Twenties turned inward, away form international issues and social concerns and toward greater individualism. The emphasis was on getting rich and enjoying new fads, new inventions and new ideas. (Hiebert 73). The traditional values of rural America were being challenged by the infamous Jazz Age, what symbolized what is shock... ...et into a speculative pyramid game, in which most of the money invested in the market wasn’t actually there.                                   The car industry was the force behind many other booming industries during this time. In 1928, their were over 21 million cars on the road that adds up to one car for every six Americans (Hicks 114). Steel, nickel, lead and other metal industries prospered with 15% of its products going to the automobile industry ( Hicks 114). Rubber, petroleum, textile and leather companies were effected greatly by the car industry too. The automotive industry effected construction as well. the car had been essential to the urbanization of the country , because so many other industries relied upon it. With this rapid urbanization came the need to build many more factories, homes, offices and stores. From 1919 to 1928 the construction industry grew from a mere 2.5 billion dollars to 5billion dollars (Hicks 115).      The Radio industry also prospered during
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment