1929 Stock Market Crash
The great crash of 1929 threw the United States economy into a downward spiral. Companies went bankrupt, people lost everything, and the words, jobs and hiring was almost removed from American society. The stock market is a long-term investment, giving higher profits than any other investment class. One must consider bear markets. Bear markets are a recession or a low/bad time in the stock market. There are also bull markets, or a high/good time in the stock market. In 1929 investors were not prepared for a bear market and when it came they panicked. During the "roaring twenties" our country prospered tremendously. "The nation's total realized value rose from $74.3 billion in 1923 to $89 billion in 1929." This so-called "Coolidge prosperity" wasn't shared by all Americans. Henry Ford at this time brought in $14 million dollars while the national average income was only $750 dollars. The cause for this large unequal distribution on wealth between the rich and middle class was because of production increases. As factory workers started producing more in the 1920's factory owners cashed in, but still paid the works almost nothing. As the unequal amount of wealth between the rich and the middle class slowly began to make the econom
The rich stopped buying items for fear of the loss of their money and the poor stopped charging for fear that they couldn't pay the interest. Since most Americans did not have the money to purchase luxury items or items needed for survival the idea of buying now and paying later caught on very fast. Finally after hanging on by fingernails the market started to fall. Charging even went so far as buying stocks on the New York Stock Exchange (NYSE) by only making a down payment. Then on the 24th things fell apart again investors lost confidence and the boom of the 1920's was officially dead. This caused instability in the global economy, which lagged down the American economy. Finally the market closed that day and the picture became clear. Because the country was slowly growing dependent on just a few industries catastrophes became a step away. "The following Tuesday (29th of October) became know as Black Tuesday as 16. Production dropped, but still goods piled up across the nation because no one would purchase anything. Profits of over 100% were to be made and every American wanted a little piece of the pie. As the gap in wealth between rich and middle class grew the poorer had no choice but to keep charging.
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,
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