Stock Market Crash

In To Kill a MockingBird

The Beginning of the Stock Market Crash

In the beginning of the stock market crash of 1929, it devastated the economy and it also was the key beginning of the Great Depression. The more people that invested money, the more the stock market would rise. People were beginning to think that they would become rich if they kept investing. A lot of people wanted to buy stocks, even when they had no money to do it. When someone did not have the money to pay for the stocks, they could buy stocks "on margin." Buying stocks on margin means that the buyer would put down some of his own money, but the rest he would borrow from a broker. Buying on margin could be very risky. If the price of stock lowered more than the loan amount, then the broker would issue a "margin call," which means that the person must pay back immediately.In October of 1929, a lot of money came through and people were surprised. By the beginning of spring, there were signs that the economy might be starting to crash. Steel production went down; house construction slowed; and car sales waned.
> Jennifer Rosenberg page 1 : http://history1900s.about.com/od/1920s/a/stockmarketcrash1929.htm

To Kill a Mockingbird

In this book, it shows that the people in that town are mostly poor and they are right in the middle of the Great Depression, caused by the stock market crash. On page 27, it says,
" 'Why does he pay you like that?' , I said.
'Because that's the only way he can pay me. He has no money.'
'Are we poor, Atticus?'
Atticus nodded. 'We are indeed' "
This is explaining how they are in the middle of the Great Depression because everyone in town doesn't have a lot of money. So they have to pay each other through work or something that isn't with money.