The stock market crash was just the beginning of the Great Depression. The stock market crash was the biggest economic fall out in the history of the United States. After World War I, the United State's economy was profitable and doing very well. Everybody thought that any price could be set on stocks and everything would still be fine. On October 29, 1929, also known as "Black Tuesday", the stock market suddenly bottomed out. The stock market prices didn't stop falling until a month had past. One of the reasons of the stock market crash was because the banks failed, because they were uninsured. I think that without having insurance, that definitely would be bad if you were losing a lot of money.Black Tuesday was the start of the Great Depression. The unemployment in the United States climbed to 25 percent during this time period. It started in 1929 and lasted until around 1940. The whole world was affected by the Great Depression. Crop prices for farmers dropped about 60 percent. Some countries began to recover in the mid- 1930's, but most of the effects didn't stop until the start of World War II. Many people believe that with the government spending money on the war, that it either helped or started the recovery process. I think that it was the government spending money, because that would create a lot of job for the unemployed.
Comments