Economic Effects Of The Stock Market Crash

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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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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 …show more content…
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