How Did The Bull Market Contribute To The Great Depression

The Great Depression was considered an economic depression, lasting a decade from 1929 to 1939. The economic demise originated in the United States and spread worldwide. There were five main contributions to the Great Depression: the Stock Market Crash of 1929, the failure of banks (bankruptcy), rise in unemployment rates, the United States economic policy with Europe, and the environmental drought. The Bull Market of the 1920s, which was considered a period of faster rising stock prices than on average, ties into both the economic boom and the Stock Market Crash of 1929. The Bull Market not only lead to the fall in economy, but initially, was long lasting and effective as a result of the boom in economy and investor psychology; investors believed pure luck would result in wealth. The Bull Market of the 1920s was the most popular, successful, and longest-running bull market.
During the “Roaring Twenties”, an era of wealth and prosperity, Americans relied solely on speculation to be successful in their investments. For instance, investors based their gamble on luck and those who had never invested in stock prior to the middle of the 1920s
In the decade following, economically, “thousands of banks and businesses failed, and millions of people were unemployed and penniless.” To relieve financial burdens, prices of commodities, including oil/petroleum and natural gas, were reduced. The nation fell into a psychological depression, too. Instantly, Americans turned to alcohol, drugs, and even suicide as an outlet to cope and heal. According to statistics, suicide rates rose from 12.1 per 100,000 people prior to the depression to 18.9 during the economy’s demise. In fact, unemployment was considered a risk factor for suicide. The economic depression “doused the spirit of optimism that shaped so many lives and attitudes during the