This page features two timelines: The importance of these timelines cannot be emphasized enough. Seeing the order in which events actually occurred dispels many myths about the Great Depression. One of the greatest of these myths is that government intervention was responsible for its onset.
The United States emerged from the war as the leading economic power, with its infrastructure mostly intact and undamaged by the war. America enjoyed prosperity during most of the s, but this prosperity was masking shaky economic conditions that would lead to a global depression that would begin at the close of the decade.
After World War I, the decade saw an increase in factory productivity and mechanization, financial prosperity, the invention of radiothe increasing appearance of the automobile on the nation's roads, and the popularity of jazz music. History has given the decade several names, including the "Roaring 20s" and the "Jazz Age".
Confidence in America's businesses was high, and that confidence was reflected in the sharp rise in stock prices through the s.
Stocks became seen as an easy way to become rich, and even ordinary Americans borrowed heavily to pay for stock purchases. Banks were more than willing to lend the money, and bythe average stock was selling for more than four times its price at the beginning of the decade.
America's factories produced large inventories of goods, and America's farms produced record harvests. But these bright spots in the nation's economy did not tell the full story.
While many Americans became rich during the s, the average worker did not. As more factories and farms mechanized, the need for labor dropped.
The goods produced in America accumulated in warehouses and grain silos because they were being produced faster than America could consume them, and because their cost was often out of reach for the typical American.
Stocks prices increasingly became inflated compared to the actual value of the companies they represented. A downturn in the price of agricultural goods caused a strain on farmers beginning in the early s.
The Federal government practiced a policy of "laissez-faire" during the s. Both the Coolidge and Hoover administrations felt that it was best to leave business unregulated and uncontrolled because the market would sort things out. Therefore, the speculative nature of the stock market and the heavy purchasing of stocks through margin loans went unchecked.
Banks made many unsound loans to stock purchasers, unworried that stock prices could ever stumble. By the end of the decade the actual condition of the American economy became apparent.
The Global Depression The problems with the American economy became evident in October,when the stock market experienced its largest crash in history.
Both days set records. The market finally bottomed in July of when the Dow fell to It would take 22 years for the market to recover. No business sector escaped undamaged. Farmers, for example, saw the prices of their crops drop dramatically.
In order to raise more money, the agricultural community attempted to recover by producing higher yields. This simply flooded the market with even more goods than could be absorbed by an already weakened demand, and prices fell further.
Many farmers lost their land when they could not pay their mortgages. Overproduction also rendered many soils unfertile, creating a large "dust bowl" ofsquare miles in the Midwest. Factories could not raise funds to expand or even cover day-to-day expenses.Black Tuesday and the stock market crash did not cause the Great Depression.
Instead, Black Tuesday made clear that the prosperity and the Great Bull Market of . Black Tuesday and the Great Depression (Uncovering the Past: Analyzing Primary Sources) [Natalie Hyde] on caninariojana.com *FREE* shipping on qualifying offers. Black Tuesday and the Great Depression explores the causes of the stock market crash in and the resulting Great Depression.1/5(1).
Historic Patterson, New York © - The Town of Patterson, NY Home Topics Catalog Search Additional Resources Search. The Great Depression Introduction.
With the conclusion of World War I, much of the world lay in ruins and economic caninariojana.com United States emerged from the war as the leading economic power, with its infrastructure mostly intact and undamaged by the war.
Black Tuesday was the fourth and last day of the stock market crash of It took place on October 29, It took place on October 29, Investors traded a record million shares. President Roosevelt signs the Declaration of War against Japan, December October 29, , was a dark day in history. "Black Tuesday" is the day that the stock market crashed, officially setting off the Great Depression.
Black Tuesday and the Great Depression (Uncovering the Past: Analyzing Primary Sources) [Natalie Hyde] on caninariojana.com *FREE* shipping on qualifying offers. Black Tuesday and the Great Depression explores the causes of the stock market crash in and the resulting Great Depression.
For more than ten years the effects of October /5(1).