Subjects

Subjects

More

The Great Depression: What Happened and Why the Stock Market Crashed

View

The Great Depression: What Happened and Why the Stock Market Crashed
user profile picture

Brayla Whittington

@raylahittington_wdto

·

2 Followers

Follow

The Great Depression was a severe economic downturn that lasted from 1929 to 1941, profoundly impacting the United States and the world. This period was characterized by widespread unemployment, poverty, and economic instability.

• The causes of the Great Depression were complex and interconnected, including the stock market crash, uneven wealth distribution, and overproduction.
Effects of the Great Depression included massive unemployment, bank failures, and widespread poverty.
• The crisis ended gradually in the late 1930s and early 1940s, with World War II playing a significant role in economic recovery.
• Understanding this period is crucial for grasping 20th-century history and modern economic policies.

11/14/2023

125

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

The 1928 Election and Hoover's Presidency

The 1928 presidential election took place against a backdrop of apparent national prosperity, pitting Republican Herbert Hoover against Democrat Alfred E. Smith.

Key points about the election:

  1. Hoover, the Republican candidate, had served as Secretary of Commerce under Presidents Harding and Coolidge.
  2. Smith was a career politician who had served four terms as governor of New York.
  3. Republicans campaigned on the years of prosperity since 1920.

Quote: Hoover praised the postwar American spirit as that of a "rugged individual," contrasting it with European systems.

Hoover's philosophy centered on individual achievement rather than central government control. He believed this focus on individualism had made the United States great.

Highlight: Hoover's belief in "rugged individualism" would shape his approach to the impending economic crisis.

The election results reflected the nation's mood of optimism, with Hoover winning a decisive victory. However, this optimism would soon be shattered by the onset of the Great Depression.

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

View

The Human Impact of the Great Depression

The Great Depression had profound and far-reaching effects on the American people, causing widespread suffering and fundamentally altering the social landscape.

Key impacts included:

  1. Massive Unemployment: The unemployment rate reached a staggering 25% at its peak.

  2. Widespread Poverty: Many families struggled to meet basic needs.

  3. Emotional Toll: People experienced feelings of shame, despair, and anger. Some felt the nation had failed its hardworking citizens.

  4. Increased Suicide Rates: The economic hardship led to a rise in suicides.

  5. Reliance on Charity: Many people had to rely on soup kitchens and bread lines for sustenance.

Highlight: The unemployment rate during the Great Depression peaked at 25%, leaving millions of Americans without work.

The human cost of the economic collapse was immense:

  • Many people went without basic necessities.
  • Accepting charity was often seen as humiliating.
  • Families were forced to leave their homes, leading to the rise of "Hoovervilles" (shanty towns).
  • Some people became "hoboes," traveling the country in search of work.

Vocabulary: Hoovervilles - Makeshift shantytowns built by homeless people during the Great Depression, named ironically after President Herbert Hoover.

Example: Many unemployed individuals illegally "hopped" railroad cars to travel in search of work or better opportunities.

The Great Depression fundamentally changed the relationship between citizens and the government, as people began to look to federal authorities for solutions to economic problems.

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

View

The Stock Market Boom of the 1920s

The 1920s saw a dramatic rise in stock market activity, which became a symbol of American prosperity before the onset of the Great Depression.

Key aspects of the stock market boom:

  1. The value of stocks traded quadrupled during this period.
  2. The Dow Jones Industrial Average became the most widely used measure of stock market health.
  3. Stock prices rose steadily throughout the decade.

Vocabulary: Dow Jones Industrial Average - A stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.

The stock market boom created a sense of euphoria and dreams of quick riches among many Americans. However, this optimism was built on shaky foundations:

  • Many investors were buying stocks "on margin," using borrowed money.
  • Speculation was rampant, with people buying stocks based on rumors rather than solid financial information.
  • The disparity between stock prices and actual economic conditions was growing.

Highlight: The stock market boom of the 1920s created an illusion of endless prosperity, setting the stage for the devastating crash of 1929.

This period of apparent prosperity masked underlying economic weaknesses that would soon be exposed, leading to one of the most severe economic downturns in history.

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

View

Economic Troubles on the Horizon

The late 1920s saw the onset of economic troubles that would eventually lead to the Great Depression. Despite a superficial appearance of prosperity, several key indicators pointed to underlying issues in the American economy.

Highlight: The superficial prosperity of the late 1920s signaled the onset of the Great Depression.

Factors contributing to economic instability included:

  1. Declining government revenues and federal spending
  2. Farmers overproducing crops and livestock, leading to reduced profits
  3. Consumers and farmers accumulating debt
  4. Industries facing challenges, particularly railroads losing business to new forms of transportation

Vocabulary: Deflation - A decrease in the general price level of goods and services.

The agricultural sector was particularly hard-hit. Farmers increased production in response to wartime demand, but this led to oversupply and falling prices. Many farmers lost their properties when banks foreclosed on their debts.

Example: Congress attempted to aid farmers with the McNary-Haugen bill, which proposed federal price supports for key products like wheat, corn, cotton, and tobacco. However, President Coolidge vetoed this legislation.

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

View

Effects of the Stock Market Crash

The stock market crash of 1929 had far-reaching consequences that rippled through the entire economy, setting the stage for the Great Depression.

Key effects included:

  1. Banking Crisis: People rushed to withdraw their money, draining banks of funds. By 1933, about a quarter of all banks had failed.

  2. Investor Losses: Those who bought stocks on margin were hit hardest, often losing their entire savings and ending up in debt.

  3. Reduced Consumer Spending: With less money available, Americans cut back on purchases, leading to a downward economic spiral.

Highlight: The stock market crash triggered a banking crisis that led to the failure of approximately 25% of banks by 1933.

The crash exposed underlying weaknesses in the economy, such as:

  • Rising prices and stagnant wages
  • Unbalanced distribution of income
  • Overreliance on credit

Vocabulary: Credit - An arrangement allowing consumers to buy now and pay later, often through installment plans.

The easy availability of credit had encouraged Americans to accumulate large consumer debts. When the crash hit, many were forced to drastically reduce their spending, further exacerbating the economic downturn.

Example: Economic estimates suggest that the average person bought new clothes only once a year, and only one in ten city homes had an electric refrigerator.

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

View

Causes of the Great Depression

The Great Depression, lasting from 1929 to 1941, was triggered by a complex interplay of economic factors. Understanding these causes is crucial to comprehending one of the most significant economic downturns in history.

Key causes included:

  1. Stock Market Crash: The collapse of the stock market in 1929 was a major catalyst for the Great Depression.

  2. Uneven Wealth Distribution: Approximately 70% of the population had low incomes, unable to maintain the standard of living.

  3. Consumer Debt: Widespread use of installment buying led many to reach their credit limits.

  4. Overproduction and Low Demand: Both in consumer goods and agricultural products.

  5. High Tariffs: These impeded international trade.

Highlight: The stock market crash of 1929 is often considered the primary trigger of the Great Depression.

The stock market played a crucial role in the economic collapse. Investors were buying stocks "on margin," using loans from stockbrokers. This practice became dangerous when stock prices fell, as brokers could demand immediate repayment of loans.

Vocabulary: Buying on Margin - Purchasing stocks with borrowed money, typically from a broker.

The stock market reached its peak on September 3, 1929. The subsequent crash culminated in "Black Tuesday," the worst day of the crash when an unprecedented number of stocks were sold.

Definition: Black Tuesday - October 29, 1929, the day of the most devastating stock market crash in U.S. history.

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

View

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

View

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

View

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

View

Can't find what you're looking for? Explore other subjects.

Knowunity is the # 1 ranked education app in five European countries

Knowunity was a featured story by Apple and has consistently topped the app store charts within the education category in Germany, Italy, Poland, Switzerland and United Kingdom. Join Knowunity today and help millions of students around the world.

Ranked #1 Education App

Download in

Google Play

Download in

App Store

Knowunity is the # 1 ranked education app in five European countries

4.9+

Average App Rating

13 M

Students use Knowunity

#1

In Education App Charts in 12 Countries

950 K+

Students uploaded study notes

Still not sure? Look at what your fellow peers are saying...

iOS User

I love this app so much [...] I recommend Knowunity to everyone!!! I went from a C to an A with it :D

Stefan S, iOS User

The application is very simple and well designed. So far I have found what I was looking for :D

SuSSan, iOS User

Love this App ❤️, I use it basically all the time whenever I'm studying

Can't find what you're looking for? Explore other subjects.

Knowunity is the # 1 ranked education app in five European countries

Knowunity was a featured story by Apple and has consistently topped the app store charts within the education category in Germany, Italy, Poland, Switzerland and United Kingdom. Join Knowunity today and help millions of students around the world.

Ranked #1 Education App

Download in

Google Play

Download in

App Store

Knowunity is the # 1 ranked education app in five European countries

4.9+

Average App Rating

13 M

Students use Knowunity

#1

In Education App Charts in 12 Countries

950 K+

Students uploaded study notes

Still not sure? Look at what your fellow peers are saying...

iOS User

I love this app so much [...] I recommend Knowunity to everyone!!! I went from a C to an A with it :D

Stefan S, iOS User

The application is very simple and well designed. So far I have found what I was looking for :D

SuSSan, iOS User

Love this App ❤️, I use it basically all the time whenever I'm studying

The Great Depression: What Happened and Why the Stock Market Crashed

user profile picture

Brayla Whittington

@raylahittington_wdto

·

2 Followers

Follow

The Great Depression was a severe economic downturn that lasted from 1929 to 1941, profoundly impacting the United States and the world. This period was characterized by widespread unemployment, poverty, and economic instability.

• The causes of the Great Depression were complex and interconnected, including the stock market crash, uneven wealth distribution, and overproduction.
Effects of the Great Depression included massive unemployment, bank failures, and widespread poverty.
• The crisis ended gradually in the late 1930s and early 1940s, with World War II playing a significant role in economic recovery.
• Understanding this period is crucial for grasping 20th-century history and modern economic policies.

11/14/2023

125

 

10th/11th

 

US History

4

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

Sign up to see the content. It's free!

Access to all documents

Improve your grades

Join milions of students

By signing up you accept Terms of Service and Privacy Policy

The 1928 Election and Hoover's Presidency

The 1928 presidential election took place against a backdrop of apparent national prosperity, pitting Republican Herbert Hoover against Democrat Alfred E. Smith.

Key points about the election:

  1. Hoover, the Republican candidate, had served as Secretary of Commerce under Presidents Harding and Coolidge.
  2. Smith was a career politician who had served four terms as governor of New York.
  3. Republicans campaigned on the years of prosperity since 1920.

Quote: Hoover praised the postwar American spirit as that of a "rugged individual," contrasting it with European systems.

Hoover's philosophy centered on individual achievement rather than central government control. He believed this focus on individualism had made the United States great.

Highlight: Hoover's belief in "rugged individualism" would shape his approach to the impending economic crisis.

The election results reflected the nation's mood of optimism, with Hoover winning a decisive victory. However, this optimism would soon be shattered by the onset of the Great Depression.

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

Sign up to see the content. It's free!

Access to all documents

Improve your grades

Join milions of students

By signing up you accept Terms of Service and Privacy Policy

The Human Impact of the Great Depression

The Great Depression had profound and far-reaching effects on the American people, causing widespread suffering and fundamentally altering the social landscape.

Key impacts included:

  1. Massive Unemployment: The unemployment rate reached a staggering 25% at its peak.

  2. Widespread Poverty: Many families struggled to meet basic needs.

  3. Emotional Toll: People experienced feelings of shame, despair, and anger. Some felt the nation had failed its hardworking citizens.

  4. Increased Suicide Rates: The economic hardship led to a rise in suicides.

  5. Reliance on Charity: Many people had to rely on soup kitchens and bread lines for sustenance.

Highlight: The unemployment rate during the Great Depression peaked at 25%, leaving millions of Americans without work.

The human cost of the economic collapse was immense:

  • Many people went without basic necessities.
  • Accepting charity was often seen as humiliating.
  • Families were forced to leave their homes, leading to the rise of "Hoovervilles" (shanty towns).
  • Some people became "hoboes," traveling the country in search of work.

Vocabulary: Hoovervilles - Makeshift shantytowns built by homeless people during the Great Depression, named ironically after President Herbert Hoover.

Example: Many unemployed individuals illegally "hopped" railroad cars to travel in search of work or better opportunities.

The Great Depression fundamentally changed the relationship between citizens and the government, as people began to look to federal authorities for solutions to economic problems.

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

Sign up to see the content. It's free!

Access to all documents

Improve your grades

Join milions of students

By signing up you accept Terms of Service and Privacy Policy

The Stock Market Boom of the 1920s

The 1920s saw a dramatic rise in stock market activity, which became a symbol of American prosperity before the onset of the Great Depression.

Key aspects of the stock market boom:

  1. The value of stocks traded quadrupled during this period.
  2. The Dow Jones Industrial Average became the most widely used measure of stock market health.
  3. Stock prices rose steadily throughout the decade.

Vocabulary: Dow Jones Industrial Average - A stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.

The stock market boom created a sense of euphoria and dreams of quick riches among many Americans. However, this optimism was built on shaky foundations:

  • Many investors were buying stocks "on margin," using borrowed money.
  • Speculation was rampant, with people buying stocks based on rumors rather than solid financial information.
  • The disparity between stock prices and actual economic conditions was growing.

Highlight: The stock market boom of the 1920s created an illusion of endless prosperity, setting the stage for the devastating crash of 1929.

This period of apparent prosperity masked underlying economic weaknesses that would soon be exposed, leading to one of the most severe economic downturns in history.

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

Sign up to see the content. It's free!

Access to all documents

Improve your grades

Join milions of students

By signing up you accept Terms of Service and Privacy Policy

Economic Troubles on the Horizon

The late 1920s saw the onset of economic troubles that would eventually lead to the Great Depression. Despite a superficial appearance of prosperity, several key indicators pointed to underlying issues in the American economy.

Highlight: The superficial prosperity of the late 1920s signaled the onset of the Great Depression.

Factors contributing to economic instability included:

  1. Declining government revenues and federal spending
  2. Farmers overproducing crops and livestock, leading to reduced profits
  3. Consumers and farmers accumulating debt
  4. Industries facing challenges, particularly railroads losing business to new forms of transportation

Vocabulary: Deflation - A decrease in the general price level of goods and services.

The agricultural sector was particularly hard-hit. Farmers increased production in response to wartime demand, but this led to oversupply and falling prices. Many farmers lost their properties when banks foreclosed on their debts.

Example: Congress attempted to aid farmers with the McNary-Haugen bill, which proposed federal price supports for key products like wheat, corn, cotton, and tobacco. However, President Coolidge vetoed this legislation.

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

Sign up to see the content. It's free!

Access to all documents

Improve your grades

Join milions of students

By signing up you accept Terms of Service and Privacy Policy

Effects of the Stock Market Crash

The stock market crash of 1929 had far-reaching consequences that rippled through the entire economy, setting the stage for the Great Depression.

Key effects included:

  1. Banking Crisis: People rushed to withdraw their money, draining banks of funds. By 1933, about a quarter of all banks had failed.

  2. Investor Losses: Those who bought stocks on margin were hit hardest, often losing their entire savings and ending up in debt.

  3. Reduced Consumer Spending: With less money available, Americans cut back on purchases, leading to a downward economic spiral.

Highlight: The stock market crash triggered a banking crisis that led to the failure of approximately 25% of banks by 1933.

The crash exposed underlying weaknesses in the economy, such as:

  • Rising prices and stagnant wages
  • Unbalanced distribution of income
  • Overreliance on credit

Vocabulary: Credit - An arrangement allowing consumers to buy now and pay later, often through installment plans.

The easy availability of credit had encouraged Americans to accumulate large consumer debts. When the crash hit, many were forced to drastically reduce their spending, further exacerbating the economic downturn.

Example: Economic estimates suggest that the average person bought new clothes only once a year, and only one in ten city homes had an electric refrigerator.

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

Sign up to see the content. It's free!

Access to all documents

Improve your grades

Join milions of students

By signing up you accept Terms of Service and Privacy Policy

Causes of the Great Depression

The Great Depression, lasting from 1929 to 1941, was triggered by a complex interplay of economic factors. Understanding these causes is crucial to comprehending one of the most significant economic downturns in history.

Key causes included:

  1. Stock Market Crash: The collapse of the stock market in 1929 was a major catalyst for the Great Depression.

  2. Uneven Wealth Distribution: Approximately 70% of the population had low incomes, unable to maintain the standard of living.

  3. Consumer Debt: Widespread use of installment buying led many to reach their credit limits.

  4. Overproduction and Low Demand: Both in consumer goods and agricultural products.

  5. High Tariffs: These impeded international trade.

Highlight: The stock market crash of 1929 is often considered the primary trigger of the Great Depression.

The stock market played a crucial role in the economic collapse. Investors were buying stocks "on margin," using loans from stockbrokers. This practice became dangerous when stock prices fell, as brokers could demand immediate repayment of loans.

Vocabulary: Buying on Margin - Purchasing stocks with borrowed money, typically from a broker.

The stock market reached its peak on September 3, 1929. The subsequent crash culminated in "Black Tuesday," the worst day of the crash when an unprecedented number of stocks were sold.

Definition: Black Tuesday - October 29, 1929, the day of the most devastating stock market crash in U.S. history.

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

Sign up to see the content. It's free!

Access to all documents

Improve your grades

Join milions of students

By signing up you accept Terms of Service and Privacy Policy

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

Sign up to see the content. It's free!

Access to all documents

Improve your grades

Join milions of students

By signing up you accept Terms of Service and Privacy Policy

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

Sign up to see the content. It's free!

Access to all documents

Improve your grades

Join milions of students

By signing up you accept Terms of Service and Privacy Policy

Module 910
One American's Swry
- Cordon Parks-> photographer, author, & filmmaker, no yrs old
Economic Troubles on the Horizon
Taxes on rich

Sign up to see the content. It's free!

Access to all documents

Improve your grades

Join milions of students

By signing up you accept Terms of Service and Privacy Policy

Can't find what you're looking for? Explore other subjects.

Knowunity is the # 1 ranked education app in five European countries

Knowunity was a featured story by Apple and has consistently topped the app store charts within the education category in Germany, Italy, Poland, Switzerland and United Kingdom. Join Knowunity today and help millions of students around the world.

Ranked #1 Education App

Download in

Google Play

Download in

App Store

Knowunity is the # 1 ranked education app in five European countries

4.9+

Average App Rating

13 M

Students use Knowunity

#1

In Education App Charts in 12 Countries

950 K+

Students uploaded study notes

Still not sure? Look at what your fellow peers are saying...

iOS User

I love this app so much [...] I recommend Knowunity to everyone!!! I went from a C to an A with it :D

Stefan S, iOS User

The application is very simple and well designed. So far I have found what I was looking for :D

SuSSan, iOS User

Love this App ❤️, I use it basically all the time whenever I'm studying