The Great Stock Market Crash Of 1929 Essay

1478 Words Apr 4th, 2016 6 Pages
The 1920’s was a flourishing decade; the economy was rapidly growing and changing, World War I was over and Jazz was emerging as the new fad of music. Sadly, the United States could not stay prosperous due to lack of understanding of simple economics during that time. After the war, the use of credit really hit it off in America, this allowed Americans to ‘buy now and pay later’. This meant that many Americans were saving less and spending more simply because they could. With introduction of stock markets many people were able to invest their money and profit off of it later on. Investing money in order to make money worked for a while until people began to speculate. Many people began to get greedy and speculate on many stocks at once, this proved to be dangerous for the economy but no one said a word. Speculation was one of the many factors that caused the great Stock Market Crash of 1929 that not only devastated the U.S. but the entire world as well. The Stock Market Crash of 1929 was caused by over speculation, loss of faith in the economic system and careless spending with American society; however, it could have been avoided if the government had responded better to the decreasing economy, if there was a better understanding of the economy and if the Federal Reserve Board had regulated the stock market with better care. There were many contributions to the stock market crash, one of them being the Federal Reserve Board, also known as, the “Fed”. The Federal Reserve…

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