Essay On The Wall Street Crash Of 1929

The Stock Market crash of 1919 was one of the starting factors of the great depression. Some background info during this time, America's economy had risen almost 45 percent, also the modern auto and airline industries were born, and America had just recently won World war 1. The stock market crash of 1929 was a major turning point in the 1930s because before the Crash had happened the Market was on the brink of collapse from giving out loans to people who couldn’t afford to pay them back, after the stock market crash happened there was a huge economic and social collapse called the great depression, during the crash nothing survived all companies were in bad shapes from the telephone/telegraph companies to even cars everyone took a hit in the crash.  One main point of the stock crash was low wages, people were not getting paid that much causing people to take out loans for money they didn’t have, another cause for the stock market collapse is Black Thursday, this day was basically the day the stock market had collapsed and the rich who owned the stocks tried there best to sell them for a profit, The effect of the collapse is known as black Monday, where dow had declined nearly 13 percent and the next day the market dropped again nearly 12 percent and dow had lost almost half of their earning. The first topic of the crash of 1927 is how people were getting paid too little causing them to have to take out a loan.

One of the reasons the stock market crash had happened was because people were no getting paid a lot of money and they had such a low wage, which had caused them to take loans that they could not afford which put them in debt.  During the so-called “roaring 20s” the average American man-made 25 dollars per week and the women who were working only made 18 dollars a week.  This says that during the ’20s people who were not rich and come from a lot of money had to go through the hardship of only getting to live off only 18 to 25 dollars a week, and depending on your gender if you were a woman you got paid 18 but if you were a man you got composited a little better getting 25 dollars a month. Also, another reason why it crashed was because of debt. From 1920 to 1929 debt had grown by more than 8 times that decade, people had taken out loans just to get necessities such as furniture, clothing, sewing machines, and cars. Debt had gotten out of control, people did not have the money to pay back what they loaned so that broke the whole system because if no one had money to pay the banks that would put them out of business too. Debt and low wages were a huge cause of why the collapse had happened.  The next thing to talk about was Black Thursday which was the day that collapse had happened.

The day that the collapse had happened was infamously called black Thursday, this day the stockholders had tried to save their own money by taking out their stocks. Black Thursday refers to the date October 24, 1929, when Dow Jones Industrial Average, or DJIA, dropped drastically as soon as the trading had opened, for nearly the entire decade the stocks for DJIA had been going high so when it came crashing down it was scary for everyone. Black Thursday was probably one of the scariest days in the 20s for economics a company that was stable for so long then losing a lot of money is something that would affect everyone. A lot of shares were dropped during black Thursday. During black Thursday 12.9 million shares were traded, when investors were trying to salvage their losses DJIA had fallen about 4.6 percent in total. This was extremely bad, people were trying to sell the stock so they can earn a little bit of money for themselves. Black Thursday had caused a lot of panics. The next thing to talk about was black Monday and everything that had happened after the collapse had happened.

The effect of the collapse had caused a huge economic downfall in any company, a lot trying their best to salvage some sort of money so they won’t go broke.  The effect of the collapse is known as black Monday, where dow had declined nearly 13 percent, and the next day the market dropped again nearly 12 percent and dow had lost almost half of their earnings. The dow was doing bad losing so much money and not being able to do anything about it. A lot of things happened during this time. A lot of economists had said that the stock market had reached “ what looks like a permanently high plateau”. This is saying that economic everything will come crashing down which it did. The economic collapse was a big event that caused a lot of businesses to go under.

The 2 main reasons for why the economic collapse was that people didn’t have a good wage, and because what happened on black Thursday the days before the collapse, and the what had happened after was extremely hard everyone lost their jobs, and people did not be able to pay for basic necessity.  The stock market crash of 1929 was a major turning point in the 1930s because before the Crash had happened the Market was on the brink of collapse from giving out loans to people who couldn’t afford to pay them back, after the stock market crash happened there was a huge economic and social collapse called the great depression, during the crash nothing survived all companies were in bad shapes from the telephone/telegraph companies to even cars everyone took a hit in the crash. There has been a couple of economic collapses since 1929.