Stock Market Crash
By: Noah Flock
The Stock Market Crash (Black Tuesday)
The Stock Market Crash 1929 was the worst in the history of the United States. It was the start of a 10 year depression which was called the Great Depression. The 1920s were called the Roaring Twenties and it came after WWI. After the market crashed all the companies took damage. The Steel industry took a dramatic decrease. Unemployment lines were half a mile long waiting for people to claim unemployment. Money was scarce in 1929 and many people lost their jobs. This led to the Great Depression which was devastating to most people. People had a lot of money in the Stocks and lost it all when the Stock Market Crashed. When this happened it caused many European Countries economy too. This Stock Market Crash was worldwide.
New York Stock Exchange
The New York Stock Exchange is the system that runs the economy. They show how the economy is doing and whether the economy is doing good and gaining points or its doing bad and losing points. The Stock Market goes by percentage and at the end of the day it can close down points and that means the economy is not doing well that day. In 1929 the New York Stock Exchange was in a panic and people were worried about the economy because the twenties were prospering and then October 1929 the Stock Market crashed and the economy would take affect for the next 10 years.
Their were many different things that caused the stock market to crash. It was caused by various economic imbalances and structural failures. There was a rapid growth in credit and loans. This caused people to buy shares and take out loans for expansion. Many people did this to redeem their debts. Many banks began to fall in 1929 and this caused the Stock Market to Crash. This eventually led to 10 years of Depression. There were 30,000 banks in 1929 and by the end of the Depression 5,000 banks collapsed.
How It Affected People
When the Stock Market crashed hundreds of people were affected. People that had jobs didn't have jobs anymore and had to claim unemployment. Men couldn't support their families because many of them lost their jobs. Many people lost money because they had money in the stocks and when the Stock Market crashed they were sent to the street because they didn't have money to support their families. Had to get rid of their cars and houses.