The Decline Of The Stock Market In The 1920's

During the 1920’s everything in the United States was at an all-time high; the income of the nation increased from $61 billion to $87 Billion and factories started to use machines quickening the work pace and production value. The people also began to invest in the stock market which underwent rapid expansion and reached its peak during August of 1929. By the time anyone noticed what was happening, the stock market already started to decline and the unemployment rate started to rise; with people in shock, bankers and investment companies bought large amount of stocks in hopes of stabilizing the already declining market. This move worked for a few days until black Monday and black Tuesday, in which the stock market crashed completely, resulting in billions of dollars being lost as well as getting rid of a thousand (or so) investors. …show more content…
This move caused the production of crops to also decline since the farmers were buying fewer good and services due to rising prices, stagnant wages, and an unbalanced distribution of income. Numerous farmers decided to move to California in an act of desperation because they were avoiding the dust bowl (severely dry land and erosion caused dust to fly everywhere ruining farms and homes) and many were so poor that they lived in shacks. In another act of desperation many farmers kept the farm but bought new machines in hopes of getting some work done, but this move became unsuccessful when they could not sell any crops that the bank