Why Did The Stock Market Grow During The Great Depression

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A large amount of the American people went from having no financial worries what so ever to struggling just to afford necessities. For the majority of the 1920’s the stock market was rising, business production was increasing at a fast pace, and many people were beginning to invest in stock. However, the business and investment growth was short lived compared to the economic depression it lead to which lasted more than a decade. In the 1920’s the stock market began to pick up as many businesses started to expand and grow. Many people began to buy stock with the thought of making money, “John Jacob Raskob, a wealthy industrialist who had become National Chairman of the Democratic Party, was quoted as having remarked how easy it was for everyone in America to become rich. According to Raskob, all one had to do was invest in good common stock and watch its value increase.” (Magill) This quote is important because it explains how people were able to make large amounts of money just from investing in stock during this rapid growth period. Americans were blinded by the thought of wealth and thought that the economic growth would last forever. It was this kind of thinking that brought the booming 20’s an end. Although many …show more content…
He said that the day was in sight "when poverty will be banished from this nation." This, it turned out, was wishful thinking.” (Arnesen) This quote is important because it shows how much the people underestimated the Great Depression. In fact, the poverty among the Americans actually got worse and a lot of the people lost all of their money and their investments. The large amount of poverty from the stock market cash only got worse for the already struggling Americans. It lead to the Great Depression. The severity and length of the Great Depression was
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