Factors leading to stock market crash of 1929

The Great Depression lasted from to and was the worst economic depression in the history of the United States. Economists and historians point to the stock market crash of October 24,as the start of the downturn.

But the truth is that many things caused the Great Depression, not just one single event. Promising the nation a New DealRoosevelt would become the nation's longest-serving president. The economic downturn wasn't just confined to the United States; it affected much of the developed world. Remembered today as "Black Tuesday," the stock market crash of October 29, was neither the sole cause of the Great Depression nor the first crash that month.

The market, which had reached record highs that very summer, had begun to decline in September. On Thursday, October 24, the market plunged at the opening bell, causing a panic. Even though the stock market regained some of its losses by the end ofthe economy was devastated.

America truly entered what is called the Great Depression. The stock market crash rippled throughout the economy. Nearly banks failed in waning months of and more than 3, collapsed in Federal deposit insurance was unheard of. Instead, when banks failed, people lost their money.

Wall Street Crash of - Wikipedia

Others panicked, exactly how to win on the binary options bank runs as people desperately withdrew their money, forcing more banks to close. By the end of the decade, more than 9, banks had failed.

Surviving institutions, unsure of the economic situation and concerned for their own survival, became unwilling to lend money. This exacerbated the situation, leading to less and less spending.

With their investments worthless, their savings diminished or depleted, and credit tight to nonexistent, spending by consumers and companies alike ground to standstill. As a result, workers were laid off en masse. As people lost their jobs, they were unable to keep up with paying for items they had bought through installment plans; repossessions and evictions were commonplace. More and more inventory began to accumulate.

The unemployment rate rose above 25 percent, which meant even less spending to help alleviate the economic situation. As the Great Depression factors leading to stock market crash of 1929 its grip on factors leading to stock market crash of 1929 nation, the government was forced to act. Vowing to protect U. The measure imposed near-record tax rates on a wide range of imported goods.

A number of American trading partners retaliated by imposing tarrifs on U. As a result, world trade fell by two-thirds between and By then, Franklin Roosevelt and a Democrat-controlled Congress passed new legislation allowing the president to negotiate significantly lower tarrif rates with other nations. The economic devastation of the Great Depression was made worse by environmental destruction. Massive dust storms choked towns, killing crops and livestock, sickening people and causing untold millions in damage.

Thousands fled the region as the economy collapsed, something John Steinbeck chronicled in his masterpiece "The Grapes of Wrath. Search the site GO.

Updated June 06, Want to learn more?

Here are five significant causes of the Great Depression. Stock Market Crash of Reduction in Purchasing Across the Board. American Economic Policy With Europe.

The Legacy of the Great Depression There were other causes of the Great Depression, but these five factors are considered by more history and economics scholars as the most significant. They led to major governmental reforms and new federal programs; some, like Social Security, are still with us today.

And although the U.

What caused the Wall Street Crash of ? | Economics Help

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