The Great Depression And The New Deal - 2393 Words

In the early 1920s, after the close of World War I a couple years earlier, Americans were seemingly prospering in their daily affairs. The nine-year span from 1920 to 1929 was filled with new and stirring changes; inventions, like automobiles powered by gas, innovative household appliances, like radios and vacuums, women’s suffrage, and more were taking off and changing the era. Companies were thriving in what was known as the Roaring Twenties. Stocks and production were greatly increasing too. This rise presented a shot for fortune, but also posed concern. More heavily in the fall of 1929, but even beginning in March, the economy began to plummet. There were secret issues surrounding the reflux of money for stocks and production, thus†¦show more content†¦Support was lost and there was no one left with the ability to invest and rescue it because it was too late. One day, â€Å"Black Thursday†, was when the panic had begun and people felt the need to sell their shares. The following week on what is known as â€Å"Black Tuesday†, prices were reaching all time lows. Confusion had begun to control the market. During this Great Crash investors lost everything. The Dow-Jones Industrial Average also plunged due to the collapse. All paper money was heading toward deletion. Pessimism over the situation was increasing and people realized they needed to be more careful in their investments. The confidence that was once in the system was gone and the reality of the situation set in (Causes of the Great Depression Great Depression and the New Deal Reference Library). The decline of the stock market was rapid and steep. Investors’ judgment with their dividends and stocks failed them because they ignored the warning signs and chased after wealth. Eugene White, an economics professor, concluded in 1990 that the only benefit for people to own stocks was to make a profit off of them rising. Investors in the market tried to make profits but t heir money was theoretical. Some had difficulties paying back money owed, leading to massive debt. All of the debt led to instability throughout the