Why the Stock Market Crashed, the effect this had on the American People and how it affected the economic structure of the United States.

The 1920s were a date of unbelievable prosperity. The tenor market was s conductding through the roof and the United States seemed to have the formula for pure(a) prosperity. However, the same formula that generated all of that profit would also be the cause of Black Tuesday. For five years prior to 1929, the live billet market had been characterized by rising prices; there was an enormous patch market. One of the causes for the stock market rising was the rising stock dividend. sassy giveors entering the market, who viewed it as an light(a) way to can robust quick, propped up the stock market. However, a relatively humble bod of Americans had investments in the market at any 1 time. Rather, the ageless influx of new investors coming in and obsolescent investors contemptible tabu ensured that new money was always afloat(p) around. The stock market also grew due to the increase in in the flesh(predicate) savings. Higher wages meant that even average American s straight off had senseless money to put into savings or invest in the stock market. It was also a relatively easy lend policy from the banks. At this time, banks made money to a greater extent(prenominal) pronto available at lower interest ball club to more and more people. Although it is debatable whether this had a direct repair on the stock market, its conceivable that many people took out loans not only to taint cars, but also to subvert stock. An over- employment meant winnings were being invested in new production. Since 1925, industries have been over-producing. The wage were consequently invested back into the business, investing in factories, new machinery, and more workers, which led to even greater overproduction. The increase in production gave the Americans organized religion in the company and encouraged them to buy more stock. At this time there were no legal legal guidelines... If you want to get a full essay , order it on our website: OrderEssay.net

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