how the stock market crashed Essay -- essays research papers

Many factors played a role in bringing about the impression however, the maincause for the Great Depression was the combination of the greatly unequal distribution ofwealth, banking problem, industrial power houses and agricultural depression whichultimately lead to the notorious Stock Market Crash of 1929. The roaring twenties wasan era when our country prospered greatly. The rapid increase in industrialization wasfueling growth in the economy, and engineering science improvements had the leadingeconomists living that the uprise would continue. During this boom period, wagesincreased along with consumer spending and stock prices began to rise as well. Billionsof dollars were invested in the stock market as people began speculation on the risingstock prices and buying on margin.On Thursday, October 24, 1929, the bottom began to fall out. Prices droppedcontinually as more and more investors move to sell their holdings. By the end of the day,the New York Stock Exchange had lost fo ur billion dollars, and it took the exchangeclerks until five oclock in the aurora the next day to clear all the transactions (Hicks 9)Following Monday the realization of what had happened began to sink in, and afull-blown panic set in. Thousands of investors-- many of them ordinary work people,not serious players -- were financially ruined. by the end of the year stock values haddropped by fifteen billion dollars (McElvaine 45). Many of the banks which had speculated heavily with their deposits were wipedout by the falling prices, and these bank failures sparked run on the banking system. Each failed bank, factory, business, and investor contributed to the downward spiral thatwould drag the world into the Great Depression (Hicks 22). During the roaring twenties which is commonly cognise as the Jazz Age, theirwas an obvious attitude that was for living for the moment. Americans in the RoaringTwenties turned inward, away form international issues and social concerns and towardgrea ter individualism. The accent mark was on getting rich and enjoying new fads, newinventions and new ideas. (Hiebert 73). The traditional values of rural America werebeing challenged by the infamous Jazz Age, what symbolized what is shock... ...et into a speculative pyramid game, in whichmost of the money invested in the market wasnt actually there.The car industry was the force behind many other(a) booming industries during thistime. In 1928, their were over 21 million cars on the road that adds up to one car forevery six Americans (Hicks 114). Steel, nickel, lead and other admixture industries prosperedwith 15% of its products going to the automobile industry ( Hicks 114). Rubber,petroleum, textile and leather companies were effected greatly by the car industry too. The automotive industry effected locution as well. the car had been essential to theurbanization of the country , because so many other industries relied upon it. With thisrapid urbanization came the need to build many more factories, homes, offices andstores. From 1919 to 1928 the saying industry grew from a mere 2.5 billion dollarsto 5billion dollars (Hicks 115). The Radio industry also prospered during