1929 Dbq

1455 Words 6 Pages
The government during the time of which these crashes occurred had different leaders and different forms of experience to use in order to deal with the problems that had been presented to them when these two crashes occurred. Therefore, the actions of the government in these points were dissimilar. When the 1929 crash occurred, Hoover insisted that there was nothing wrong and said that the people should just let things happen naturally and let the economy fix itself. However, as time went on, and he saw that there was not much of a change to the progress of the economy, so he did the only thing that he was able to do and suggested the implementation of emergency Federal Reserve policies so that there would be stable credit, with tax reductions, …show more content…
The crash had immediate effects on the New York Stock Exchange, being as it may that there was a staggering amount of sell orders in the previous week causing a few clerical errors that they needed to fix (Brennan 66). They had to make sure that everything was right and that they did not do anything wrong. The lowered prices of the stocks made people wary of the stock market, and not many people wanted to participate in it. Even so, some addicted speculators still bought into the stock market because of the incredibly low prices of the stocks. People were so unaware of how bad things were that they still bought margin accounts, hoping that this decline was just a normal bust in the economy. After a time, however, it was obvious to all people that this was an inescapable event that would be hard to escape. The Dow-Jones Average, which once peaked at 381, continued to tumble since Black Thursday, another name for the crash of 1929, and closed on November 13 at an average of 224 (Brennan 67). The crash also set off a series of changes in the market, such that the market crash reduced wealth of the overall population, which lead to less consumer spending, and it created immediate income uncertainty, decreasing the purchases of consumer durables (Cecchetti 9). Automobile registrations and departments store sales decreased, as a result. Since many people participated in the stock exchange and the stock prices fell, people had less money to spend, and with less money to spend, stores were not making any money, decreasing profits made by stores. In turn, this made the economy become as bad as it was. After the Crash of 1987 occurred, the stock market index that was was generated using the capitalization of 500 large companies fell considerably, going down nine percent that week, which was the largest it had been for decades (Carlson 7). In the summer that occurred that

Related Documents