The Great Depression In The 1920's

What would have happened if the banks would have been wiser with their loans during the 1920s? There is a number of outcomes that could have happened but didn't happen. During the 1920’s, often called the Roaring Twenties, the U.S. economy had an unpredicted economic boom. Things such as electricity, radio, telephone and cars were being produced by mass. Much of the population moved into the cities to acquire jobs in these industries. Americans found themselves with ever increasing amounts of money to spend which was then invested in the stock market and deposited into banks. With the supply of money growing rapidly, banks were opening up at the rate of 4 – 5 per day. People were buying shares of stock which was a part of a company, when that company makes money whatever …show more content…
May of 1928 the stock market was at its peak, it was at its peak until September of 1929. The stocks raised over 40 percent within this time. On October 29, 1929. The stock market crashed this was known as Black Tuesday, nearly 40 billion dollars was lost that day alone. People wanted to get there money out so this did bank runs which was people storming the banks because they were afraid of there money being lost. Many people did this, it was uncommon for people to not do it. The other people who did not do this had borrowed money, this was money that they were going to pay off, most people used this money for stocks. Would we gone into World War 2 if banks were wiser during the 1920s? I think we would have still gone into World War 2 because it was to help out our allies out, at this point I don't think there was intentions of not going into war. The Us was looking for any possible way to get out of the depression and they saw a way that would allow production to be made and put people into the factories. This is exactly what happened the war started production and slowly we came out of the depression after 10 struggling