Essay On 1930s America

This paper will present a brief summary and discussion of the causes of the Great Depression based on Frank Stricker 's paper, "Causes of the Great Depression: or What Reagan doesn 't know about the 1920s." Stricker presents an argument as to what he believes to be the root causes of the Great Depression as they relate to the decade preceding the stock market crash of 1929. This review is intended for undergraduate and graduate students of U.S. American History. Stricker present 's several essential points in his paper. The capitalist form of economy, by its nature, has an insatiable appetite for ever-increasing profits. During the 1920 's profits were high, yet income distribution was unequal (95). The only real benefactors were

In late October of 1929, the U.S. stock market crashed, setting our nation into the Great Depression. In an attempt to reveal the true catalysts of the event, the book “Causes of the 1929 Stock Market Crash” examines popular beliefs of what really caused the economic tragedy. The nine questionable causes that are discussed in this book are that the stock market was too high in September of 1929 due to “excessive speculation” (Bierman 32), there was a downturn in business activity, the Hatry affair, the Federal Reserve Board’s actions, a message that there was a “war” against speculators, excessive buying on margin and of investment stocks, excessive leverage in terms of debt, a competitively priced utility market segment paired with a setback in the public utility market, and an overreaction by the stock market.

On ‘Black’ Tuesday, October 29, 1929, a rapid fall of selling of shares in the stock exchange crushed the stock exchange. On occasion there were no offers to buy stock at all but just to sell it. And by the end of the trading session 16,410,000 shares of stock had been dumped, a number never been know before at that time. After a few weeks some $30 billion of wealth had evaporated in to air.

The 1920s seemed to promise a future of a new and wonderful way of life for America and its citizens . Modern science, evolving cultural norms, industrialization, and even jazz music heralded exciting opportunities and a future that only pointed up toward a better life. However, cracks in the facade started to show, and beginning with the stock market crash of 1929 the wealth of the country, and with it the hopes and expectations of its people, began to slip away. The Great Depression left a quarter of the population unemployed and much of the rest destitute and uncertain of what the future held. Wealth vanished, people took their money out of banks, and plans were put on hold. The most significant way in which the Great Depression affected Americans’ everyday lives was through poverty because it tore relationships apart and damaged the spirit of society while unexpectedly bringing families together in unity.

On the notorious “Black Tuesday,” October 29, 1929, Wall Street suffered a massive financial collapse due to heavy trading prices on the New York Stock Exchange. President Hoover claimed the U.S. business was “on a sound and prosperous basis,” but he couldn’t have been any further from the truth. The collapse of the U.S. economy, which was the largest in the world, created a global financial shockwave that could be felt across the globe. By 1931, the effects of Depression affected not only the U.S., but the world. “By 1933, 30 million people in industrial nations were unemployed, five times the number of unemployed four years before” (Starr 54). During the Great Depression, unemployment rates

After World War 1, many Americans believed that the nation should never again become involved in a war. In the 1930s, in Italy, Germany, and Japan, economic hard times due to the worldwide depression toppled the democratic government. Ambitious rulers seized power and set out to conquer neighboring lands. No one tried to stop them. By the 1930s, dictators had gained control of Italy (Benito Mussolini) and Germany (Adolf Hitler). Mussolini played an Italian anger over the Treaty of Versailles that ended WW1, the economic troubles, and fear of a communist revolution to bring his party to power (Fascist Party). He outlawed all political parties except his own. He controlled the press, law, enforcement, and schools. He demanded total obedience.

“In 1928 and 1929 the Federal Reserve System raised interest rates in an effort to slow the market speculation” which led to a reduction of spending (Mitchener, 2011). The share prices began to drop rapidly which left many people uneasy about their stocks and on October 29, 1929 nervous shareholders sold 16,410,030 shares causing the stock market crashed. The estimated loss of around forty billion dollars left the United States in a state of panic. Millions of Americans had invested both small and lager sums of money into stock. The fortunes of the wealthy were destroyed and the savings of the average American were lost. America’s prosperity of the 1920’s had come to an abrupt halt. Millions had lost so much money that banks began to fail taking people’s savings with them, forcing factories to close, and bankruptcies swept the nation. “By 1932, U.S. manufacturing output had fallen to 54 percent of its 1929 level, and unemployment had risen to between 12 and 15 million workers” (Nelson). The Great Depression was now gripping the nation.

Both domestic and international factors led to the Great Depression, and one of the domestic factors involves the 1929 crash in the stock market. This event has come to be known as “The Great Crash.” It was in autumn of 1929 that the market actually began to fall apart. October 29, “Black Tuesday,” marked the day in which all efforts to save the market had failed. Throughout the 1920s, stock prices had been rising steadily, but in 1928 and 1929 they surged forward and the prices of stocks greatly rose and when they reached their peak most people sold their stocks to earn a profit. So many people sold their stocks at a rapid rate that the corporations were unable to pay the shareholders. In this time frame, over sixteen million shares of stock were

As “prosperity 's decade” came to a symbolically harsh and sudden end on Thursday, October 24, 1929, the United States government, led by President Herbert Hoover, was thrown into the unknown. No such downturn had ever presented itself before, which compounded itself with the lack of economic understanding present at the time. Yet it had seemed that the economy was healthy before the crash. Employment was high and inflation was low. Yet these conditions only served as a mirage for many Americans. As industrialists became wealthy using new age technology and selfish business methods, 70 million people lived below the poverty line. Many of these men and women lived in

There was still a major gap in income of the rich and middle class. The top 0.1% of Americans in 1929 had a combined income equal to the bottom 42% of Americans, while 80% of the people had no savings at all (McElvaine 38). The average income for the farmer was only $273 compared to the average national income of $750 (McElvaine 21). By 1929 the productivity of the American industry had risen 43 percent while the wages only increase 8 percent (McElvaine 39). The American worker had enjoyed the 1920s as an era that was filled with new inventions, the radio, automobile, electric irons, and refrigerators were in every home. The average American worker could not afford to buy these items, but they could if they made small weekly or monthly payments. Convincing Americans to go against traditional values was difficult, but the advertising industry convinced them they could (McElvaine 41). The average worker in America was living in poverty, making about $24.76 a week. Most Americans did not have much money to loose when the stock market crashed; they had no savings and no investments. The people who lost the most were the wealthy investors (McElvaine 17).

In the early 1900’s the stock prices were bringing the attention of many citizens around the world. However they didn’t know they were going to lose all of their money and some even their property. Between the years 1929 to 1939 an incident known in history as “The Great Depression” occurred. It was the deepest and longest-lasting economic downturn in the history of the Western industrialized world (“The Great Depression”). The Great depression had a significant impact on the American economy, society, and politics, and had a hard recovery process.

America’s Great Depression is believed as having begun in 1929 with the Stock Market crash, and ending in 1941 with America’s entry into World War II. In order to fully comprehend the repercussions and devastating effects of the Crash of 1929, it is important to examine the factors that contributed to the catastrophic event which led to The Great Depression. The Great Depression was the worst economic slump in U.S. history, and it spread to most of the industrialized world. Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920s, and the

now travel to the cinema in the family car. It was a big hit in the

It was 1929, and in the United States things could not be better for those smart enough, or for that matter, brave enough, to gamble on the Stock Market. All of the big stocks were paying off handsomely, the little ones too. However, as much as analysis tried to tell the people that this period of great wealth would last, no one could imagine what would come of the United States economy in the next decade. The reasons for this catastrophic event in American 20th century history are numerous, and in his book, The Great Crash, John Kenneth Galbraith covers the period and events which lead up to the downward spiral in the fall of 1929 and the people behind the scenes on Wall Street who helped this fire spread.

In the Midwest, farmers were losing their land to mortgage foreclosures. American tourist deaths were attributed to a terrorist attack. A president known for his effective use of the media governed the United States. The U.S. cooperated in a change of government in the Philippines. Parents and churches criticized motion pictures for eroding American morals. And Appalachian State, after setting a new enrollment record, received favorable publicity in a national magazine. Sound familiar? Think again; you're 55 years off. The year was 1934 in the U.S.A.