The Stock Market CrashIn August of 1929, stock brokers were giving little investors like 2/3 of the stock they were buying. There was like 8.9 billion dollars that was out on loan, and that was more than the entire amount of currency that the U.S had. The share prices were rising and that made people want to go out and invest more. On “Black Tuesday” the stock market fell, majorly. A lot of People were panicking and selling everything and they weren’t buying. Because people were selling, they were losing their money and that only made the prices fall faster. This was one of the reasons of the Great Depression. I think that investing is a good thing but you have to be smart about it. Like yeah, people probably didn’t see this coming but they should have been smart and not put so much money in when the prices were going up, because what goes up must always come down.
The Great DepressionThe Great Depression hit the whole world. It started in about 1929 and it went to the late 1930s early 1940s. It was the longest depression, and the deepest depression of the 20th century. The Depression started because of the stock market crash in 1929. Because the stock market crashed in the U.S. it affected the whole world. The depression affected the richest and poorest countries all over the world. The unemployment rate got up to 25% and in some other countries it got up to 33%. Construction pretty much stopped and nobody was building anything and that was bad because that means that houses weren’t being built. If houses aren’t being built then a lot of people don’t have work like plumbers, wood workers, construction people, cement factories, and a whole bunch of other companies. Farmers were hit pretty hard as well. There crop prices fell about 60%. Countries started to get into this terrible cycle where there didn’t have money so they wouldn’t buy things. This hurt businesses so they couldn’t hire as many people. So people didn’t have jobs which caused them to have less money. It was a terrible cycle that was very hard to break. I would hate to be living in this time, even though something like this is happening right now, but it was way worse back then. If I had like kids or something to take care of I would be so scared.
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