How Did The Stock Market Crash Of 1929

The Stock Market Crash of 1929 is a major economic event in U.S. history marking the end of the flourishing 1920s, a period of prosperity and economic blossoming. This event can be traced back to the end of World War I in November of 1918. After the devastation and chaos the war had left for Europe, the U.S. jumped in and played a major part in providing goods and supplies to rebuild these countries and their economies. This overseas trade with those who were involved in the war was a crucial factor leading to economic growth in the U.S. The period following the war , from 1920 to October of 1929, was considered a mini golden age for the U.S. economy as wealth doubled (1).
No wonder why it is referred as the Roaring Twenties. For the first time, as more and more people traveled to the cities, seeking to live a “comfortable” life, the cities became more populated than the rural states. The Great Migration of African Americans into the city describes one aspect of the rising population in the cities (2). Along with the soaring population in the cities,
One of the reasons is for underestimating the Stock Market Crash, stating that only stock traders will suffer from the crash. With that in mind, he did not involve the federal government in order to pacify the situation. He focused on creating jobs rather than directly granting reliefs. He used federal construction projects such as the Hoover Dam and Grand Coulee Dam in order to create jobs. The Hawley-Smoot Tariff passed under Hoover raised tariffs which worsened the economy (7). The Reconstruction Finance Corporation (RFC), Glass-Steagall Act and the Emergency Relief and Construction Act passed in 1932 were other efforts to stabilize the economy by offering loans to banks and businesses. These efforts were to no avail as the depression was unavoidable after more fluctuations and crashes in the U.S. economy