Stock Market Crash

By: Morgan Halbur

Impact on America / American Literature:

Impact on America:

The stock market crash has a ripple effect that eventually led to some degree of impact on essentially every segment of the country. It helped destroy the buying power of many consumers and the lending ability of many banks. Also many banks were wiped out. They had loaned out large amounts of money to people and companies who had put money into buying stock.

Impact on American Literature:

When the stock crashed and the hectic prosperity of the 1920s gave way to mass unemployment, the crisis energized American writers. A new wave of writers began to look to politics and economics for inspiration. Never before or since have so many of America's best writers focused on the lives of the poor and the working class or written about more politic or economic engagement.

What's the Big Deal?

The crashing of the stock market in 1929 acted to accelerate the global economic collapse. The aftermath of the crashing and collapsing, led to the Great Depression. Among the other causes of the eventual market collapse were low wages, the proliferation of debt, a struggling agricultural sector and an excess of large bank loans that could not be liquidated.

Background Info:

HISTORY:

• October 29,1929, known as Black Tuesday, panicked sellers traded nearly 16 million share on the New York Stock Exchange, and the Dow Jones Industrial Average fell -12%.

• U.S. stock market crashes, leading to the Great Depression.

• July 1, 1929, enforcement of the Immigration Act of 1924 begins

• 1920-1929 stock moe than quadrupled in value. Many investors became convinced that stocks were a sure thing and borrowed to invest more money in the market.

•By the inauguration of Franklin D. Roosevelt as president in March 1933, the banking system of the United States had largely ceased to function.


LITERATURE:

• Ernest Hemingway publishes his noted World War 1 novel, A Farewell to Arms.

• William Faulkner publishes The Sound and the Fury.

• Katherine Anne Porter, Flowering Judas

Countee Cullen, Black Christ and Other Poems

• Nella Larsen, Passing