The collapse of the US stock market on October 29,1929 known as Black Tuesday was the main reason The Great Depression began. Everybody was trying to sell their stocks but nobody was willing to buy it. At first the stock market was the best way to become rich but instead it was the way to bankruptcy. The Stock Market crashing also affected banks causing them to close down. Banks used their clients money to invest in the stock market but once it crashed they had lost everything and the bank was forced to shut down. The bank shutting down meant that their clients had also lost all the money they had put in. People rushed to the open banks left and withdraw all their money before it was too late but some of them did not make it in time causing them to also become bankrupt. The crash also affected businesses causing them to cut back the amount of workers and hours and wages. Businesses were also affected by people spending less money on unnecessary things causing business to also cut down on employees. Some stores could not manage to stay open causing all the employees to be jobless. http://history1900s.about.com/od/1930s/p/greatdepression.htm
The stock market crashing caused a 89% decline in stock prices. It also rose the unemployment percentage and the wages began to go down for the employees that still had a job. Homes and other things were repossessed or put in foreclosure. Farmers were also affected by this crash because it caused the collapse of food prices and the lost of exporting. Farmers also lost their land and equipment.In 1932 the unemployment rate was past 20 percent. Millions of people were homeless and thousands of businesses and banks had closed down.People had returned home finding that their family was living on the street and their possessions.Some people went from town to town to look for jobs but they could not find anything because they did not exist.People had to look in dumps and garbage cans in order to find food to eat and survive. http://topics.nytimes.com/top/reference/timestopics/subjects/g/great_depression_1930s/
http://www.doctorhousingbubble.com/bank-failure-indymac-bank-lessons-from-the-great-depression-part-xiv-bank-failures/
No comments:
Post a Comment