Black Tuesday And The Great Depression
The Great Depression
The Problem
The stock market crashed on October 29, 1929 and was dubbed the term Black Tuesday. This was the foundation that led to the great depression. While they were several contributing factors that caused the Great Depression, the stock market crash is arguably the most affective determining factor. During the great depression people: lost their money in the stock markets, their jobs, starvation started to set in, and even worst individuals were taking their own lives. The poor became poorer. This occurred in a time where racism and discrimination was ramped. As hard as it was for whites to get a job at this time it was undoubtedly harder for blacks. Crime rate rose to all time high as people who lost their jobs converted to petty theft to as a means to supplement income. Women turned to prostitution in order to feed their family. Americans switched to alcoholism as an outlet in this dark time. Nearly 15 million Americans were unemployed and half of the US banks also failed. People stop purchasing goods, and the prices on these goods were still rising. By 1930, 4 million Americans were still looking for work but couldn’t find any and the numbers of Americans still rise up to 6 …show more content…
Policy-makers used John Keynes theories of government intervention. The great depression was a severe economic contraction due to high taxes. Fiscal policies hindered the natural growth of the economy, for instants the national act of 1933, businesses were ordered to cut production and uphold high prices and wages. Any businesses that were caught cutting prices were fined or arrested. However, the national act of 1933 was shut down by the Supreme Court in 1935 due to the unemployment rate increasing to over 10 million people. In other words, people were without jobs and were unable to pay for the high prices set by business owners due to this fiscal
The Problem
The stock market crashed on October 29, 1929 and was dubbed the term Black Tuesday. This was the foundation that led to the great depression. While they were several contributing factors that caused the Great Depression, the stock market crash is arguably the most affective determining factor. During the great depression people: lost their money in the stock markets, their jobs, starvation started to set in, and even worst individuals were taking their own lives. The poor became poorer. This occurred in a time where racism and discrimination was ramped. As hard as it was for whites to get a job at this time it was undoubtedly harder for blacks. Crime rate rose to all time high as people who lost their jobs converted to petty theft to as a means to supplement income. Women turned to prostitution in order to feed their family. Americans switched to alcoholism as an outlet in this dark time. Nearly 15 million Americans were unemployed and half of the US banks also failed. People stop purchasing goods, and the prices on these goods were still rising. By 1930, 4 million Americans were still looking for work but couldn’t find any and the numbers of Americans still rise up to 6 …show more content…
Policy-makers used John Keynes theories of government intervention. The great depression was a severe economic contraction due to high taxes. Fiscal policies hindered the natural growth of the economy, for instants the national act of 1933, businesses were ordered to cut production and uphold high prices and wages. Any businesses that were caught cutting prices were fined or arrested. However, the national act of 1933 was shut down by the Supreme Court in 1935 due to the unemployment rate increasing to over 10 million people. In other words, people were without jobs and were unable to pay for the high prices set by business owners due to this fiscal