The Great Depression Of The 1920 ' S Essay

709 Words Jul 7th, 2015 3 Pages
The 1920’s were known as the “Roaring Twenties” because of all the partying that was going on at the time. World War One had just ended and people were in a constant state of celebration. This lasted an entire decade. However, a time of much joy was followed by a time were partying, having a job, and having food on the table were luxuries. This time period was known as The Great Depression. As America began to entire this desperate time, a new president was elected. Herbert Hoover was elected into the presidency in 1929. Less than eight months into his term, it happened. The day known as Black Tuesday was the end of a two-week downfall of the Wall Street Stock Market. This was a time where people were investing in companies and on “get rich quick” power trips. They started buying stocks on margin, which means they borrowed money from the bank to pay for stocks in companies. However, the prices for these stocks never rose, causing investors to lose their money. During this time, banks did not have insurance on their clients’ money, and when the stock market crashed, banks lost everything and therefore, the people lost most of their money. Since Hoover was president at the start of the Great Depression, the people saw an easy target to blame for their distress. People started giving Hoover all kinds of hate. According to James Gregory, a historian at the University of Washington, the people who lost everything built little shantytowns known as “Hoovervilles”, named so after…

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