Reasons 1920 stock market crash great depression

The stock market crash on October 29, set in motion a series of events that led to the Great Depression, but in fact, the American economy and global economy had been in turmoil six months prior to Black Tuesday, and a variety of factors before and after that fateful date in October caused and exacerbated the Great Depression.

This uneven distribution of wealth was mirrored in the unequal distribution of riches between industry and agriculture.

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Global Crisis And The Great Depression While America prospered during the s, most of Europe, still reeling from the devastation of World War I, fell into economic decline. While the great rise in the stock market from points in early to points in September was fueled by optimism and false hope, the plunge was flamed by stark fear.

Stock Market Crash Of The Great Depression On September 3, , the Dow Jones was at a high of points, and on October 29, , it had fallen to 41 points after a week of panic selling. Bank Failures And The Great Depression Once the stock market crashed, fearful that banks would fail, millions of Americans began to withdraw their money. Virtually overnight, they put thousands of banks in peril.

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The more money Americans withdrew, the more banks failed, and the more banks failed, the more money Americans withdrew. Lack Of Available Credit During The Great Depression With massive draws on funds during the Great Depression, banks had no money to lend, and this lack of available credit led to a further worsening of economic conditions.

People Stopped Spending Money During The Great Depression When the stock market crashed, and the banks failed, and unemployment levels reached higher and higher points, people understandably stopped spending money, which also deepened the economic crisis as demand for products and services ground to a halt. Dust Bowl During The Great Depression A drought that lasted from to , known as the Dust Bowl, aggravated the problems of the Great Depression.

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More than a million acres of farmland were rendered useless because of severe drought and years of overfarming, and hundreds of thousands of farmers joined the ranks of the unemployed. Menu Home Great Depression Timelines Stock Market Banks FDR New Deal Photos Causes Effects Facts Facts About Causes Facts About Effects Facts About Banks Facts About Stock Market Facts About Timeline Facts About Unemployment Dust Bowl Dust Bowl Facts Dust Bowl Hobos Dust Bowl Migration Dust Bowl And New Deal Unemployment Bloody Monday Job Loss and Job Losses Then and Now Great Depression Great Depression Great Depression Bank Bailouts Stimulus Packages and Stock Market Crash Great Depression Workers How To Survive The Great Depression.

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