Essay Stock Market Crash Of 1929

1174 Words Apr 5th, 2016 5 Pages
Stock Market Crash of 1929: From Upswing to Rock Bottom.
"We have hit rock bottom and are on the upswing," said Secretary of State, James Davis, after the crash. The Stock Market Crash of 1929 caused the United States to face many difficulties. Millions of Americans and even people across the globe were hit and somewhat effected by this tragic period in history. Many economists and historians believe the Great Depression was an effect of the crash, but the crash only signaled what was already the start of the Depression. The effects were seen in finances and unemployment, and because the stock market crashed, the economy of America plummeted. Many lost life savings, bankers and brokers had no money to loan so were forced to close, unemployment skyrocketed and led to a tremendous decline on world trade. Many misconceptions exist about the magnitude of the effects and most of the population does not fully comprehend the repercussions and effects of the Crash of 1929. The most impactful effects were: the loss of finances, psychological damage, consumer spending and FDR/New Deal.
In the Roaring Twenties, it became possible for ordinary citizens to afford luxury items on credit and to invest money in small businesses and the stock market. Americans developed the new mindset of "buy now and pay later" which led to very dangerous practices. Installment plans, lines of credit, and other various loan methods were available for everyone, even factory workers, to afford what their…

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