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The Stock Market Crash of 1929: By Kelsey Reynolds (Events leading up to…
The Stock Market Crash of 1929: By Kelsey Reynolds
Effects
Banks were forced to close
Stock prices continued to go down and they lost their value.
People lost their money
Causes
September 3, 1929: The stock market reaches an all time high. Many people were hopeful that it would keep going up like this, but it didn't work out like that.
October 24, 1929: Black Thursday
People begin to panic and sell their stocks. The market value fell 11%
October 28, 1929: Black Monday
The stock market value fell another 13%.
October 29, 1929: Black Tuesday
When the stock market finally crashed: Over 16 million stocks were sold and billions of dollars were lost.
Significance
One of the events that lead to the Great Depression
A lot of people became jobless, homeless, and starving.
The unemployment rate reached 25% in the US by 1933, the highest it has ever been.
We can relate what happened to the recession in 2008
Events leading up to the stock market crash
The ending of WWI: This is one of the things that began the expansion of the economy.
The beginning of the Roaring 20's: People were buying too much on credit and taking out too many loans that they were unable to pay back.
The ratification of the 18th Amendment: Prohibited the sale and use of alcohol in the US. This actually ended up hurting the economy and caused a lot of people to buy and sell it illegally.
Warren G.Harding and Calvin Coolidge presidencies: These are the presidents that implement the Laissez Faire policy.
The expansion of big businesses
Agriculture was starting to suffer: There was an overproduction of agricultural goods that a lot of farmers were unable to sell.
Banks were closing all over the US. About 600 banks closed each year from 1920 to 1929.
More people started to live in urban areas than rural areas. This effected the economies of both rural and urban areas across the US.
There was an overproduction of goods that began to happen that caused a lot of businesses to be unable to sell it all.
