The Great Depression

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The Stock Market Crash

After nearly a decade of optimism and prosperity, the United States was thrown into despair on Black Tuesday, October 29, 1929, the day the stock market crashed and the official beginning of the Great Depression. As stock prices plummeted with no hope of recovery, panic struck. Masses and masses of people tried to sell their stock, but no one was buying. The stock market, which had appeared to be. the surest way to become rich, quickly became the path to bankruptcy

Stock market

A nd yet, the Stock Market Crash was just the beginning. Since many banks had also invested large portions of their clients' savings in the stock market, these banks were forced to close when the stock market crashed. Seeing a few banks close caused another panic across the country. Afraid they would lose their own savings, people rushed to banks that were still open to withdraw their money. This massive withdrawal of cash caused additional banks to close. Since there was no way for a bank's clients to recover any of their savings once the bank had closed, those who didn't reach the bank in time also became bankrupt.

Great Depression Facts

Great Depression Facts

-The Dust Bowl during the Great Depression led to widespread migration, including 200,000 people who moved to California, most arriving with no money, family, or resources.

-Economic conditions that led to the Great Depression began in the early 1920s, but most people think of the stock market crash of 1929 as the start of the Great Depression.

-The Great Depression lasted from 1929 to 1941 and only ended with America’s entry into World War II. -Franklin D. Roosevelt’s New Deal programs employed hundreds of thousands of workers, many who were unskilled. One of the most famous New Deal programs was the Civilian Conservation Corps (CCC), and these workers are credited improving dozens of US National Parks.

-Drought conditions of the Dust Bowl were prevalent in most of the years of the Great Depression, but the term was actually coined in April 1935. -At its highest point during the Great Depression, unemployment was 25% in 1933

In 1928

When Herbert Hoover was elected president in 1928, he predicted poverty would be eliminated in the United States. Coming at the end of a decade where millionaires were made overnight, his forecast may have seemed logical at the time. The stock market was making many Americans very wealthy.

How does the stock market crash??

The stock market is a complicated endeavor, and the history of the stock market is something to consider when studying the stock market during Great Depression. Basically, the stock market works on investor confidence. If investors believe a stock to be a good value, they pay more for a share and the value of the stock rises. If investors believe the value of a stock will fall, they must sell it a lower price. But, if all investors sell their shares simultaneously and no stocks are bought, the market value shrinks. This is precisely what caused the stock market to crash in 1929.