Effect Project

The Great Depression Causes &

Causes & effect of Black Tuesday

In 1925 stocks and real estate values had peaked and began to drop. After September 3rd the stock fell quickly losing 17% of 381.17. A month later it recovered by almost 8.5% of the 17%. until the week was over then it dropped leading to October 24th 1929 "Black Thursday". The big Company owners bought "Blue Chip" (safer than a regular stock). On October 28th "Black Monday", The Dow Jones lost 13% of value in a day. On Black Tuesday 16 million shares of stock were sold. The stock market lost $14 billion in one day, and lost a total amount of $30 billion.

Causes that led to the economic collapse of the 1930's:

  1. Industries struggled because people having hunger strikes in the early 1930's up until 1934 then by 1934 the strikes changed to the union recognition strikes.
  2. Consumers had less money because more than 13 million people were out of jobs.
  3. The farming problems were that there were too much food and not enough people to buy the food
  4. the way people were living on credit were that they were "Buying now paying later.
  5. The 25% of the people were rich and got richer and the 75% were poor and they got poorer by earning less than $2,500 a year.