The 1929 stock market crash was the beginning of America’s worst
nightmare, also known as the Great Depression, which had lasted for ten years
sadly. As this turn of event transpired billions of dollars had been lost while
taking out thousands of investors. The country was in devastation because the
economy was failing and everyone effected by it. So many had lost their jobs
because of this and almost half of the banks in America during the time had
gone bankrupt. This wasn’t exclusively reason of the great depression, but it
did act to quicken the worldly collapse of the economy.

There are multiple reasons for what caused the 1929 stock
market crash: One reason was because of the fact high investment led to the
rise in stock prices. Another reason
is that regular people that invested invented their money into the market hoped
for short-term benefits of wealth instead of looking for long-term assets. Also banks had invested their
customer’s money into the market without letting know what was happening. Farmers weren’t able to payoff the
banks that loaned them money. Furthermore
these same banks had loaned money to foreign countries who occasionally didn’t
pay back the advances that they where given.

It is believed that on the disastrous day of October 29, 1929,
more than 16 million stocks had been trade and because of the crash the market
had unfortunately lost about $14 billion that day. During this time period the country had an enormous amount of
people unemployed because of the great depression. It is said by 1933, the joblessness rate had increased from 3% to
25%, so basically of 15 million Americans had lost their occupations. Since so many people had lost their
jobs during the great depression, this resulted in a lot of people losing their
homes since they couldn’t afford them. I
find all of this to be sad but interesting because of the fact that since the
banks where loaning money to people that could never payback, which ended up
forcing the economy to squander money and people to lose their livelihood.

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Surprisingly, the main industry that was actually doing well was
the film production in Hollywood. “It is thought that people went to the movies
because, for a brief time while at the movie, they could forget their many
hardships. Comedies were big at this time and the Three Stooges provided a
great deal of entertainment for many. The Wizard of Oz was released during this
period in 1939.”(The Great Depression Facts, Timeline, Causes, Pictures) The
timeline of the Great Depression has multiple dates, for example in the
beginning of it all president Herbert Hoover came in to office on March 4,
1929.

During his tenure, this man had increased the protection for
employees of the government, “canceled
private oil leases on federal property, and directed the FBI to arrest Al
Capone. He added 5.3 million acres to federal parks and forests, and planned
for dams in the Tennessee Valley. He established the Federal Farm Board to help
farmers raise prices. He lowered the top income tax rate from 25 percent
to 24 percent”. (Amadeo, K.) In august of that year was when the roaring twenties had
reached its climax. The roaring twenties was a time when a lot of people
challenged Prohibition, spoiled themselves in new ways of dancing and dressing,
and rejected the moral standards of that time.

There are a lot of events that started the Great Depression, these
events are the stock market crash of 1929, bank failures, the reduction in
purchasing across the board, the American economic policy with Europe, and the drought
conditions. First is the Stock
Market Crash of 1929, a lot people consider, inaccurately that this day is the
same as the day of the infamous hopelessness that took hold of the country. But
it actually “Black Tuesday” is one of the events that started the Great
Depression. After that was the fact
that during the course of 30s so many banks had failed. This was because the
“bank deposits were uninsured and thus as banks failed people simply lost their
savings.

Surviving banks, unsure of the economic situation and concerned
for their own survival, stopped being as willing to create new loans. This
exacerbated the situation leading to less and less expenditures.” (Cland.k12.ky.us, 2017) Then
their was the reduction in purchasing across the board, basically what happened
here was that once the market had crashed, people from all social and
economical classes had stopped buying items. Which had piloted the decrease in
the number of stuff being produced while lessening the workforce for it all.
Next was the American economic policy with Europe, since businesses had started
to nose-dive during this period the government had crafted the “Smoot-Hawley
Tariff”. (Cland.k12.ky.us, 2017)

This was used to help product companies in
America, while forcing a higher tax import on foreign countries that traded
with America. Causing an economic strain with other countries and America. When
it comes to the drought conditions even though this is not a direct correlation
to the great depression, “the drought that occurred in the Mississippi Valley
in 1930 was of such proportions that many could not even pay their taxes or
other debts and had to sell their farms for no profit to themselves. The area
was nicknamed “The Dust Bowl.” This was the topic of John Steinbeck’s
The Grapes of Wrath.” (Cland.k12.ky.us, 2017) The great depression
peaked at 1933, by this time almost half of the banks in America had failed,
and about 15 million people had lost their jobs. All-in-all the Great
Depression is one of the most horrifying things that our country has dealt with
and it is honestly amazing that we was able to combat this terror and walk into
the age that we are in now. An sure I have lived through the recession that
began in 2007, and many people that I know had lost their jobs and their
livelihood just because of the fact that the banks were just giving money to
anyone that asked for it so they could by big and fancy houses and cars that
they couldn’t afford at all. Subsequently this force the economy to the decrease
and the unemployment rate had increased. After all this was happening these
same banks that forced people to lose their jobs had asked the government to
bail them out just so they could function properly.  But I feel without the experience of the
stock market crash of 1929 and the great depression we as a Americans wouldn’t
know how to react and to prepare for an economic failure such as that like how
we was able to handle the great recession that had happened about 10 years ago.

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