Causes of the Stock Market Crash of 1929.
The Stock Market Crash of 1929 was the most devastating stock market crash in history. It signaled the 12 year depression. The decade that led up to the crash was the roaring 20's, it was a time of wealth and excess. Some people believed that the stock market would rise indefinitely, despite the dangers of speculation. The market had been on a 6 year run, but in the days leading up to the crash, the market was unstable. People were buy on margin and borrowing money from the banks. So when the stock went down people lost their saving and the bank went to collect the money that was borrowed, but it wasn't there. The banks were not able to pay the people whose money they borrowed. There was a run on the banks because people came to get their money and there wasn't any so that caused panic.
The Stock Market started to crash on October 24, 1929("Black Thursday"), losing 11% of its value at the opening bell on very heavy trading. All across the United States, newspapers covered the event over the weekend. More investors decided to get out of the market on October 28,("Black Monday"). Slides continued with a record of 13% On "Black Tuesday", October 29, 16 million shares were traded, the volume of stocks traded, was a record that would not be broken for nearly 40 years. In two days the market lost over $30 billion.
Causes of the Great Depression.
One of the major causes of the Great Depression was the stock market crash of 1929(see above).
2. Bank failures, 9,000 banks failed in the 1930's. There were uninsured bank deposits, therefore as banks failed people lost their savings. Surviving banks stopped being as willing to give out loans because they were concerned about their own survival.
3. Reduction in purchasing across the board, which is where individuals stopped purchasing items because of the stock market crash and economic fears.
4. The American economic policy with Europe. The Smoot-Hawley-Tariff created by the government to protect American business in the 1930's. A high tax was charged on imports leading to less trade between American and foreign countries.
5. The drought that occurred in the Mississippi Valley in 1930, was not a direct cause. The drought was so big that many people couldn't even pay their taxes or other debts, and farmers had to sell their farms. The area was nicknamed the "Dust Bowl".
Women Struggle to Survive.
During the Great Depression, women worked hard to help their families survive. Women canned food, sewed clothes, and managed household budgets. Women that worked outside the home received less money than men did. Even though women had been working outside the home before the economic crisis. Many people believed that women didn't have the right to work. Women started to compete for a share of the job market, as well as compete with jobless male workers and with discrimination and a widespread of resentment.
Women found creative ways to reuse wardrobes and home goods they already had, because few families could afford consumer goods. They salvaged and recycled rags, broken dishes and pots, they also sewed clothes and relined old coats with blankets. The saying that Mary Beth Norton and her co-authors reminded women was, "use it up, wear it out, make it do, or do without." Jeane Westin recalled,"Those days you did everything to save a penny."
I think the stock market crash wouldn't have been as bad if people didn't panic. The Great Depression was a very difficult time, I wouldn't have wanted to live during that time period. I don't think it was fair of people to discriminate against working women. Women had to support their families too, especially if they didn't have a husband.
Sources:
U.S. History Book
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