In late October the stock market crashed, wiping out 40 percent of the paper values of common stock. Instead, the stock market continued to plummet over the course of a few days setting in motion one of the most devastating periods in the history of the United States. The most significant events started on Black Thursday, October 24, On that day, nearly 13 million shares of stock were traded.
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It was a record number of stock trades for the U. Morgan and a few other bankers attempted to bail out the banking system using their own money. Their move led to a slight increase in stock price on Saturday, October But over the weekend many investors lost faith in the stocks and decided to sell their shares. The situation worsened yet again on the infamous Black Tuesday, October 29, , when more than 16 million stocks were traded.
The stock market crash crippled the American economy because not only had individual investors put their money into stocks, so did businesses. When the stock market crashed, businesses lost their money.
Consumers also lost their money because many banks had invested their money without their permission or knowledge. But the Depression deepened, confidence evaporated and many lost their life savings. By the value of stock on the New York Stock Exchange was less than a fifth of what it had been at its peak in Business houses closed their doors, factories shut down and banks failed.
Farm income fell some 50 percent. By approximately one out of every four Americans was unemployed.
According to historian Arthur M. The consequence was the relative decline of mass purchasing power. The pattern of income distribution, in short, was incapable of long maintaining prosperity. The slackening of the automotive and building industries was symptomatic. The existing rate of capital formation could not be sustained without different governmental policies — policies aimed not at helping those who had money to accumulate more but at transferring money from those who were letting it stagnate in savings to those who would spend it.
After Black Thursday, what rule was safe except Sauve qui peut? And businessmen, in trying to save themselves, could only wreck their system; in trying to avoid the worst, they rendered the worst inevitable. By shattering confidence, the crash knocked out any hope of automatic recovery.
Representing the businessmen, the federal government had ignored the dangerous imbalance between farm and business income, between the increase in wages and the increase in productivity.
Representing the financiers, it had ignored irresponsible practices in the securities market.
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Representing the bankers, it had ignored the weight of private debt and the profound structural weaknesses in the banking and financial system. Seeing all problems from the viewpoint of business, it had mistaken the class interest for the national interest. The result was both class and national disaster. The Crisis of the Old Order, The Age of Roosevelt Houghton Mifflin Company, , pp. How to Cite this Article APA Format: Social Welfare History Project.
Stock Market Crash of October There are MANY today who need to read this article…from the White House to the home of the common man…though there may still be in some instances a racial divide in America, the divide between prosperity and poverty is ever widening.
The Gates and the Buffets of the world continue on. As the saying goes: Those who do not learn from history are condemned to repeat it. I may only be 16 but i completely agree with you. It points out many good fact for many uses like a research paper and also it is really informational. I totally aggree with you guys.
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When I was picking a topic to research, my mom kept saying do the Great Depression. She said to do it because it was going to happen again. I kind of aggree with her. Remember I am Only sixth grade and I kind of understand politics. I am 15 and I also completely agree with the above comment. Not only is this true, it is also full of info for a research paper, report, etc.
I will definitely be using this article for my report. In reading this article today, I can say one thing: Many of those signs are present right now! In fact, every time the Fed Reserve mentions raising the interest rate, you can see a sudden and sharp decline in the market. Consumer confidence is at an all time LOW, rivaling that of the Great Depression, regardless of what the media is attempting to convince the public with.
I think it is a good thing we went through all of this because it makes our what it is today. Click here The stock market crash — eh. Click here Black monday — stock market crash , Other stock market crash resources: Click here point stock market crash october??
Click here stock market crash chart caused crash, 4 responses stock market crash chart caused crash. Click here Stock market crash october — social welfare, Stock market crash leads great depression. It can happen again, it is a cycle market conditions are ripe because of oil.
Stock Market Crash of Facts, Causes, Effects
The Great recession of is a prime example of the street not being watched, but how when it is so big and complex. But to what extent. It used to be said when America sneezes the world gets a cold. Not anymore now when China sneezes world gets a cold.
Sincerely John P Murt.1929 Stock Market Crash
Best of luck, Jack Hansan. I am here to figure out what will happen in the next crash, due sometime in the next 15 months. The collapse of the economies of China, Malaysia and most other emerging industrial nations will cause a domino effect that will swiftly land at the front door of the USA.
Since we artificially inflated the worth of our money and actually devalued it by printing more and more of it and then artificially holding down lending rates, the worthless currency here will collapse.
In the midst of this reality the only people who will make out are the super rich. You see, my little sheeple and under-educated tots who visit this article, this cataclysmic event has been orchestrated.
My plan is to convert all my cash to gold ingots. I plan to buy land and be off grid living in a sustainable, green manner and not dependant upon the system. It is a bleak time, indeed.