how the stock market crashed Essay -- essays research papers

some factors played a role in bringing about the depression however, the maincause for the Great slack was the combination of the greatly unequal distribution ofwealth, banking problem, industrial power houses and agrarian depression whichultimately lead to the infamous Stock Market dispel of 1929. The roaring twenties wasan era when our surface area prospered greatly. The rapid increase in industrialization wasfueling growth in the economy, and technology improvements had the leadingeconomists life-time that the uprise would continue. During this boom period, wagesincreased along with consumer sp residualing and farm animal prices began to rise as well. Billionsof dollars were invested in the stock market as mountain began speculation on the risingstock prices and buying on margin.On Thursday, October 24, 1929, the bottom began to fall out. Prices droppedcontinually as more and more investors tested to sell their holdings. By the end of the day,the New York Stock Exchange ha d scattered four zillion dollars, and it took the exchangeclerks until five oclock in the morning the next day to clear all the transactions (Hicks 9) chase Monday the realization of what had happened began to sink in, and afull-blown panic set in. Thousands of investors-- many an separate(prenominal) of them ordinary working people,not serious players -- were financially ruined. by the end of the year stock values haddropped by fifteen billion dollars (McElvaine 45). Many of the banks which had speculated heavily with their deposits were wipedout by the falling prices, and these bank failures sparked run on the banking system. Each failed bank, factory, business, and investor contributed to the downward spiral thatwould drag the world into the Great mental picture (Hicks 22). During the roaring twenties which is commonly known as the Jazz Age, theirwas an manifest attitude that was for living for the moment. Americans in the RoaringTwenties turned inward, outside(a) form inte rnational issues and social concerns and towardgreater individualism. The emphasis was on acquire rich and enjoying new fads, newinventions and new ideas. (Hiebert 73). The traditional values of campestral America werebeing challenged by the infamous Jazz Age, what symbolized what is shock... ...et into a tough pyramid game, in whichmost of the money invested in the market wasnt actually there.The car fabrication was the force behind many another(prenominal) booming industries during thistime. In 1928, their were over 21 million cars on the route that adds up to one car forevery six Americans (Hicks 114). Steel, nickel, lead and other metal industries prosperedwith 15% of its products going to the automobile industry ( Hicks 114). Rubber,petroleum, textile and slash companies were effected greatly by the car industry too. The automotive industry effected construction as well. the car had been essential to theurbanization of the country , because so many other industries relie d upon it. With thisrapid urbanization came the need to chassis many more factories, homes, offices andstores. From 1919 to 1928 the construction industry grew from a mere 2.5 billion dollarsto 5billion dollars (Hicks 115). The Radio industry also prospered during