Assigned blog #1
1. Causes of the Stock Market Crash
The Stock Market Crash of 1929 was proceeded by the roaring 20's, which was a time in the United States of great economical prosperity. It was thought by economists that the market had reached a "permanently high plateau." "Black Thursday", October 24, 1929, was the day that share prices for New York Stock Exchange fell without warning. The market lost 11% of it's value and chaos erupted on the floor. On "Black Monday", more investors decided to get out of the market causing even more trouble. On "Black Tuesday" the number of stocks traded that day was not surpassed for 40 years. Rich families tried to buy large stocks to show the people that they believed in the market but it didn't work.
2. Causes of the Great Depression
There were many things that contributed to the Great Depression. The Stock Market Crash of 1929 being a major one. Also, bank failures were big contributers. In the 1930's over 9,000 banks failed, leaving people without money. People just plain stopped buying things. This lead to a vicious cycle where there were less products being made, so there were less jobs to be worked. At the one point the unemployment rate was at 25%. The Smoot-Hawley tariff, passed in 1930, caused high tax on imports which caused less trade between the US and foriegn countries. The Dust Bowl also spurred the Great Depression. It was a drought in the Mississippi Valley and people couldn't pay taxes or and other debts so they were forced to sell without making any profit.
5. Effect stock market crash had on other countries(469-471)
Many countries in Europe suffered through the 1920's. These Eropean countries were trying to finacially over come the devastions that was World War I. The Smoot-Hawley tariff was big in causing difficultlys for European countries that traded with the US.
http://voices.yahoo.com/how-did-stock-market-crash-1929-affect-foreign-2024658.html
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