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The Stock market crashed, 1929

By, Brandon Winkle

The start of a depression

On October 29, 1929, this very day completely screwed the stock markets. people bought stocks in this market and people were buying a lot. But some people were cheating the system by borrowing money they don't even have. This very day lead for a very long depression, or "economic crisis" that lasted around 10 years.

Causes of the crash

Overproduction of industry

Overproduction of industry was a major cause of the crash. Many companies, like the Ford car company overproduced goods causing an over flooding of the markets. This made workers earn less and that would make them want to buy less products. Thus making a ripple effect causing more people to buy less and making for a weak economy.

Introduction of credit

This was probably one of the biggest causes of this stock market crash. People could borrow money with credit. People took an outlook on this credit as "free money". Which people thought they could spend all of this "free money" but they didn't think they would have to pay all that back. People would buy so many products, even though it was good for the economy, it was terrible for the banks.

Many people would go into major debt that they wouldn't even be able to pay off at all in their life. Also banks would close since they wouldn't be making any money since people couldn't pay it off. The Federal Reserve tried to make the situation better by lowering interest rates, but in the end it was worse. People would spend even more and not be able to pay it back. So credit cause a major ripple effect that caused this huge crash.

Facts about the crash

The people

The people were the hardest that were hit by this crash. The stocks on black Thursday were traded with a record of 12,894,650 shares were traded. Millions of people were out of work with a groundbreaking 30% unemployment rate.

the banks

multiple banks that were fairly popular had a take for the worse. Multiple banks shut their doors for good and were majorly in debt for many years. Some of them still haven't bounced back today. Maybe if the banks managed their money better and didn't introduce credit, their wouldn't have been much of a crises.

Quotes from the people during the crash

"If, with all the advantages I've had, I can't make a living, I'm just no good, I guess."38

- An unemployed Texas schoolteacher, 1933
"Three or four million heads of households don't turn into tramps and cheats overnight, nor do they lose the habits and standards of a lifetime... They don't drink any more than the rest of us, they don't lie any more, they're no lazier than the rest of us.... An eighth or a tenth of the earning population does not change its character which has been generations in the molding, or, if such a change actually occurs, we can scarcely charge it up to personal sin."

- Federal relief administrator Harry Hopkins, 1933
"How many men ever went to a barbecue and would let one man take off the table what's intended for nine-tenths of the people to eat? The only way you'll ever be able to feed the balance of the people is to make that man come back and bring back some of that grub that he ain't got no business with!"

- Louisiana Senator Huey P. Long, 1934