Essay The Crash Of The Great Depression

1349 Words Apr 11th, 2016 6 Pages
Even though the crash of 1929 was long ago, the crash should be kept in the textbook because the stock market crash the the most significant crash in US History. Although the crash only lasted 4 days, it led to a catastrophic sell-off. This crash affected the US’s culture, social living, and economy very greatly.
In 1919 the US was victorious from ww1 britain and its Allies were exhausted financially from the war. Europe’s slow recovery from World War I contributed to a global recession in the 1920s and 1930s that added to the Great Depression’s reach in the United States. US economy was thriving. In the 1920’s everyday life was changing. Electrification transformed america. Towns were hooked up to the grid. New technology emerged like the airplane, radios, and domestic good that started out as luxuries and soon became necessities. To help out in the war, people bought Liberty bonds. People bought these from the government and got money and some interest in return. Liberty bonds created an investing culture in the 1920’s. Successful people started investing in stocks because they thought it was reliable. Not only did successful people buy stocks but ordinary people as well. People around the US could buy stocks using telegraphic ticker machines. They had so much in the market that they started borrowing increasing sums of money to speculate on rising share prices. People would buy shares on margin(which meant people would buy stocks with borrowed money from banks). The…

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