The Roaring Twenties consisted of many major events that took the American economy for a spin. The Stock Market Crash of 1929 and the Great Depression were two major socially and economically disastrous impacting events to happen. The stock market crash of 1929 was one of many stock market crashes throughout history, but definitely was the most important onein the history. The stock market crash contributed to the beginning of the Great Depression, but it was only one factor among many root causes of the Depression.
A weak banking system, industrial overproduction, and further collapses in already-low farm prices each contributed to the economic downturn. The Great Depression had many disastrous on early americas economy but an uplifting occurence ended the tragic time period. During the 1920s, the United States stock market down poured rapid expansion, reaching its greatest peak in August of 1929. Years of booming prosperity ended in great catastrophe.
The United States experimented with Prohibition. New music and the Jazz age, rose from the streets of Harlem, NY. Women got the right to vote and to more jobs and indepence. The whole of society was convinced that anything was possible, not only in the stock market and finances, but also in every aspect of life. Most of this is taken for granted now because what was considered a new and improved idea turned into the Stock Market Crash of 1929 which overshadowed the great improvements in society. The epic boom ended in a critical bust.
“On Black Monday, October 28, 1929, the industry declined nearly thirteen percent.” The day after, Black Tuesday, the market dropped even more. By the time the middle of November rolled around, the industry had lost almost half of its worth. By this time, unemployment had risen and production had already declined, causing stocks to end in great depth of their real valued worth. Due to the overproduction of consumer goods and the agricultural products exceeded the supply, lead to the halt of production in companies and factories. “When the markets reopened on Monday, October 28, 1929, another record number of stocks were traded and the stock market declined more than 22%.
The situation worsened yet again on the infamous Black Tuesday, October 29, 1929, when more than 16 million stocks were traded. The stock market ultimately lost $14 billion that day.” Among the other causes of the market collapse, low wages, excess of large bank loans that could not be liquidated, a struggling agricultural sector and debt all occurred. Many companies, unable to produce any consumer products, simply because it was not demanded, filed for bankruptcy and ended up having to discharge many workers. Governors of many Federal Reserve Banks believed stock-market speculation diverted resources from productive uses, like commerce and industry. The economically declining oppression continued throughout the summer of 1932, when the Dow closed at its lowest value of the twentieth century. The Dow did not return to its normal economic heights until November of 1954, after the Great Depression concluded.
The financial boom occurred during an era of optimism of families prospering, telephones, automobiles, and new technologies arising. Middle class women and men made livings and investings in growing currency through stocks and bonds. The Stock Market Crash helped contribute on the Great Depression, which forced the United States government to make changes in the regulation of stock exchanges, providing much greater protection for investors. The Great Depression was the worst economic slump the United States ever encountered. The Great Depression virtually altered all of the industrialized world after it spread nationally. The depression began in late 1929 and lasted for about a decade. Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of commerce and currency throughout the 1920’s as well as the extensive stock market crash that took place during the later part of the 20’s.
By 1933, when the Great Depression reached its lowest point, some 15 million Americans were unemployed and nearly half the country’s banks had failed.”President Herbert Hoover, underestimating the seriousness of the crisis, called it “a passing incident in our national lives,” and assured Americans that it would be over in 60 days.” Hoover believed that government should not directly intervene in the economy, and that it did not have the responsibility to create jobs or provide economic relief for its citizens. Hoover was of course blamed as a contributor to the great depression, along with being depicted with the symbolance of ‘inside-out’ pockets that flew by the name of “Hoover Flags” to demonstrate how he made everyone broke and down, contributing in the saying “Hoovervilles” who were the ones impacted by this depression. Franklin Roosevelt from New York, offered Americans a great ordeal to attack the depression and declare a four day bank holiday which was passed as a backbone to stabilize the banking system from its on going crashing. Franklin Roosevelt won the presidential election in overwhelming victory.
Inauguration Day was a important day on March 4th, where every state ordered all remaining banks to close at the end of the fourth wave of banking panics, and the United States Treasury did not have enough funds to pay all government workers. Franklin came back with a solution that projected a calm energy and optimism, declaring that there will be no need to fear. During Franklin’s early times in the office as president, he declared to stabilize agricultural and industrial production and to stimulate recovery with the work of creating new jobs, which was soon passed by legislation. At this point in time, things started to see a peak in progression.
Programs and institutions were made to contribute in the recovery of the United States from the Great Depression, such as the Tennessee Valley Authority which built hydroelectric projects and dams to control flooding and provide electricity to the Tennessee region. As well as the TVA, the Works Progress Administration program that created permanent jobs that employed millions of people thought the decade. In 1935, Congress also contributed to the uplift when passing the Social Security Act, which for the first time provided Americans with unemployment, pensions, and disability for old age. The Nineteen Twenties consisted of many ongoing and crucial events that took the American economy for a toll. The Great Depression and the Stock Market Crash of 1929 were two major socially and economically disastrous impacting events to happen to the United States. Though these tragic events took place and caused a ginormous negative outbreak on society, the economy continued to grow and improve with more and more support and dedication by the people and its congressional aid.
Without President Franklin Roosevelt’s bright ideas and empowering movements, the uplift of the depression may have never been seized.