Causes Of The Economic Crash Of 1929 Essay

The Economic Crash of 1929 The 20’s are considered one of the best eras in history. Citizens were enjoying the rise of companies and businessmen such as Henry Ford, whose company created jobs and opportunities that would affect the whole country. For the first time in history, America had become a society based on consumerism. The problem was no longer whether if businesses could provide enough products, but whether they could make society consume their product. If was a glorious era up until 1929; the year the stock market crashed. The crash of the stock market was a catastrophic event since many of the banks in the country owned a considerable amount of shares. If the stock market crashed, the banks would surely follow. The first signs …show more content…
A newspaper in 1929 was the way news would go around. Everyone in the country would read the newspaper. When England’s Chancellor referred to America’s stock market as an “orgy of speculation”, the newspaper agreed and published the Secretary of the Treasury who said that “investors acted as if the price of securities would infinitely advance”. Imagine living in 1929, and hearing the man responsible for this country’s economy say that in other words, the prices of shared were going to crash someday. This led people to panic and as a result the DOW dropped on the days this article was published. The New York Times also added their fair share of panic to the public when they published a series of articles describing margin sellers, and the exit of foreign investors. What the public saw was all the foreign investors “abandoning ship”, as they all saw the inevitable crash of the market. The Washington Post even had headlines that said “Huge Selling Wave Creates Near-Panic as the stocks collapse”, the New York Times headlined, “Prices of Stocks Crash in Heavy Liquidation”, all these newspapers were responsible for stirring up the panic that would also lead to the stock market