Stock Market Crash Essay

Submitted By hperry
Words: 600
Pages: 3

The Stock Market Crash

Could you imagine with 2,360,000 people unemployed, walking around, hopeless? The cities of New York and Chicago, endless miles of people in line looking for a cup of weak, withered down, soup. No food for 3 days, kids ribs piercing threw their shirt that’s been on their back for months. They are living this life for one reason, the stock market crash. The Great Depression affected every country around the world. End to loans that U.S had extended to European countries. Governments dropped drastically in Latin America. ¼ of the work force was unemployed. 5,500 banks closed. 32,000 businesses went bankrupt. Tobacco company’s income dropped 70%, even with the people addicted to cigarettes. During the first three weeks of October the market performed erratically, but on October 23 prices fell sharply. Everyone wanted to sell his or her stocks, so this confused the market and made it fall back on time. The average stocks declined over 50 percent. High interests rates and a slowdown in the growth of the money supply were sufficient to tilt the economy. This reduced the wealth of the investors and adversely affected their ability and willingness to purchase goods and services. With that in hand, Wall Street saw that people stopped buying leisure things which increased unemployment and lowered peoples confidence. Some businesses that took it the worse were the automobile, steel, railroad, and farming. The crash happened from an overextension of credit and spending in the 1920’s. The stock market crash dramatically shook public confidence in the U.S economy. World War Two brought us out of the depression because America needed to mobilize. By us going to war this employed many people, everyone would take a job no matter what it was, as long as they could put dinner on the table for their family. “Although the American economy has now solved the problem of mass production, it has not yet solved the question of distributing the consumer goods of modern economy”-Stuart Chase. The government thought of an idea called the new deal to keep us out of debt and preventing anything happen like this again. George and Lennie felt the impact of the economic crisis because they were loosing jobs left and right, when really their work was valuable. California