The Effects of the Stock Market Crash of 1929 - 946 Words

Western Civilzation The stock market crash October 29, 1929 was apart to a world wide financial crises. World War I was a boost for agriculture in the United States. While Great Britain, France, and the Soviet Union was victorious in World War I, the war proved devastating economically. It brought heavy debt and much of their resources were used to pay the debt of the war. Much of Europe’s major cities were destroyed. Asia and South America provided exports during the war and continued to do so after the war ended. This extended the economic recovery in Europe even further. Germany was under the Treaty of Versailles thus in debt to the entire cost of the war that was to be paid in foreign securities. This was a significantly large problem and the United States agreed to loan money to Germany in order to help stabilize its economy. Because United States Industry was unaffected by the war they were able to turn its concentration to consumer production. The United States became a †Å"creditor nation† because of its prosperity and was able to lend money to other countries. After affects of World War I to farming and food industries, the roaring twenties and inequality of wealth, risky investments with leveraged stock purchases caused the stock market crash were causes of the great depression. During World War I Europe’s agricultural was at a dead standstill. At this time the world depended on the United States for exported produce. The governmentShow MoreRelatedThe Effects Of The Stock Market Crash Of 19291552 Words   |  7 Pagesdrops precipitously as it did in 1929. Even today, there is controversy regarding the causal events leading up to the stock market crash of 1929. The question most debated is- which factor was the greatest contributor to causing the crash? Many think the answer is simple, for example, unemployment. On the contrary, the answer is quite complex because there were many interconnected causes. When answering this question , it is first crucial to analyze the causes of the crash and the causes of the depressionRead MoreEssay on Stock Market Crash as the Cause of the Great Depression1211 Words   |  5 PagesUnited States Great Depression leads many people to believe different stories about what actually caused it. The Stock Market Crash in October of 1929 is often referred to as the beginning of the Great Depression, but did it actually cause it? The answer is that it was the spark that lit the flame of the Great Depression. The Great depression was a financial decline that started in 1929 and lasted through most of the 1930s. Its pinpoint was in North America and Europe, but plagued countries aroundRead MoreEssay on The Great Crash of 1929 and The Panic of 20081323 Words   |  6 Pagessponsorship of the assembly line, the automobile industry was rising and vehicles were becoming more affordable. The end of World War I was also having a positive effect on the American economy. The events leading to the crash of ’29 were recognizable and now as economists look back some ask how did we as a nation not see this coming? The actual crash did not occur overnight, it lasted over the span of five days, days that America will never forget. America had just implemented an installment plan whichRead MoreEssay on The Great Depression, Annotated Bibliography879 Words   |  4 PagesStephen G. Understanding the Great Depression: Lessons for Current Policy . Monetary Economics (1997): 1-26. This article is about the circumstances that led to the collapse of the economy in 1929. It relates to my research proposal because I am evaluating historic events that led to the financial crisis of 1929. The article discusses how deflation played an important role in expanding the depression, and how the Gold Standard, a monetary system in which a country’s government allows its currency unitRead MoreThe Stock Market Crash of 19291289 Words   |  6 Pagesat home or in the bank into the stock market. People migrated to the prosperous cities with the hopes of finding much better life. In the 1920s, the stock market reputation did not appear to be a risky investment, until 1929.First noticeable in 1925, the stock market prices began to rise as more people invested their money. During 1925 and 1926, the stock prices vacillated but in 1927, it had an upward trend. The stock market boom had started by 1928. The stock market was no longer a long-term investmentRead MoreEssay abou t The causes and effects of the stock crashes1596 Words   |  7 PagesThe causes and effects of the stock crashes Almost 75 years and almost 20 years ago, there were huge crashes in New York. These crashes caused an uproar throughout the nation. Number of people died, billions of dollars lost and damaged lots of lives. Those crashes had been called most severe of the 20th century. Those crashes are symbolized as Black Days. Well, you might think that those crashes could be car crashes or plane crashes or train crashes. You might also think that if nationRead MorePresident Herbert Hoover : The Legacy Of The Great Depression1156 Words   |  5 PagesGreat Depression. Should Herbert Hoover be defined as the ineffective president accountable for the aftermath of the Stock Market Crash of 1929 or did he actually play an important role in alleviating the economic turmoil, but simply went unrecognized for his heroic contributions? Although he is known to be an excellent businessman, the prevention of the Stock Market Crash of 1929 was an impossible feat for even someone as educated as President Herbert Hoover. All throughout the prior decade, theRead MoreHow Money Is A Crucial Part Of The World1334 Words   |  6 PagesOctober of 1929, America’s economy crumbled and is known as the Stock Market Crash. The Stock Market Crash was an extreme downturn in the value of shares given to companies in America. These events didn’t all collapse in one day; they slowly happened over a two-week time period which highlighted the ending of what was known as the Roaring Twenties. The Crash was a long process Americans had to face before things started to return to their normal state. The process that led up to October 1929 saw equityRead MoreThe Cause and Effects of the Great Depression Essay1443 Words   |  6 Pagesthe stock market crash of 1929 was the main cause of The Great Depression. In fact, The Great D epression was caused by a series of factors, and the effects of the depression were felt for many years after the stock market crash of 1929. By looking at the stock market crash of 1929, bank failures, reduction of purchasing, American economic policy with Europe, and drought conditions, it becomes apparent that The Great Depression was caused by more than just the stock market crash. The effects wereRead MoreThe Stock Market Crash of 19291013 Words   |  5 PagesBlack Tuesday was Tuesday, October 29, 1929. This was the day the New York Stock Exchange crashed. This was the single largest crash in the country. Black Tuesday hit Wall Street as investors traded 16 million shares in one day on the New York Stock Exchange. Black Tuesday wiped out thousands of investors and billions of dollars were lost. Black Tuesday was an event leading up to the stock market crash. As a result numerous Americans lost all to a lot of their savings. Black Tuesday was also known