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:
- 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.
- Consumers had less money because more than 13 million people were out of jobs.
- The farming problems were that there were too much food and not enough people to buy the food
- the way people were living on credit were that they were "Buying now paying later.
- 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.