Stock Market Crash Of 1929

Superior Essays
World War 1 had a great impact on the industrial and non-industrial aspects of the United States’ economy. After offering arms and support to countries, like Britain and France, the U.S. quickly gained profit leading to more job opportunities, and higher paying salaries for workers in America. The abundance of money in America created the era known as the Roaring Twenties leading to the rapid expansion of the U.S. stock market. The crash of the U.S. Stock Market ended up wiping millions of dollars away from Americans not only affecting the nation but countries connected commercially to the United States.
Events leading to the Stock Market Crash of 1929 began throughout the1920’s. After America became more dependent on industrial innovations
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The panic surrounding the stock market crash began on Thursday also known as Black Thursday (October 24), when the market opened 11% lower. Leading corporations and companies, like J.P. Morgan, stepped in with bids above the market price to control the panic, and the losses on that day were modest with stocks returning to normal in the next two days. The panic however, began again on Black Monday (October 28), with the market closing down 12.8%. On Black Tuesday (October 29) more than 16 million shares were traded. The Dow Jones Industrial Average lost another 12% and closed at 198—a drop of 183 points in less than two months. Prime securities declined heavily. General Electric fell from 396 on September 3 to 210 on October 29. American Telephone and Telegraph dropped 100 points. DuPont fell from a summer high of 217 to 80, United States Steel from 261 to 166, Delaware and Hudson from 224 to 141, and Radio Corporation of America (RCA) common stock from 505 to 26. From there, the market kept trending lower until it decreased completely in 1932 (“Stock Market Crash of 1929” …show more content…
After gambling money, investing in stocks and spending on consumer goods Americans could no longer afford the luxuries of spending money on commercial buys. The decrease in sells created an immense devastation to industrial companies who depended on high consuming rates to continue the production of commodities. Therefore, as there was no buying, shops went bust and factories had no reason to employ people who were making products that were not being sold. As a result of these changes unemployment became a major issue. The results of unemployment did not only affect those who lived in New York or surrounding states but also across America. In the state of Washington the crisis of the stock market crash was experienced a little differently. Washington was mostly responsible for exporting raw and semi-finished materials to companies that would later transform them into the finished product, but because most of the population that lived in cites depending on these raw materials, it wasn’t until 1930 that people from Washington started to become affected by the job losses influenced by the stock market crash. Since the government provided no aid for unemployed workers, losing jobs quickly turned into losing homes and extreme poverty. In 1931, tent camps and shack towns began to be created to help those most in need that were suffering from unemployment (“Economics and Poverty”). By the start of 1930 the

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