How the Stock Market Crash of 1929 Affected the United States
How the Stock Market Crash of 1929 Affected the United States
Kyle Tenisci
Dr. Greason
HS 310-52
13 May 2013
1 The year of 1929 is marked by the Stock Market Crash in which most consider to be the beginning of the Great Depression. This was not the sole cause of the Great Depression, though. The Stock Market Crash was caused by an economy that was not stable enough to handle the high stock prices. The Stock Market Crash helped bring on the Great Depression which forced the United States government to make changes in the regulation of stock exchanges, providing much greater protection for investors.
The United States was a young nation and was not always as powerful as it is now or was in 1929. The United States was formed from European citizens who wanted to start their lives over. So the United States had relatively little money compared to the financial status of the rest of the world. London at the time was considered the center of finance. The United States borrowed money from England and other countries to spur its industry. By 1960 it seemed that the United States would inevitably be the world 's most important business and financial power. The Civil War provided a boost for industry, which jump-started the gradual shift of financial power from London to New York. The United States had a valuable asset in the form of land. “The United States was forced to develop itself before it could worry about competing with the world. Hence, the amount of capital was far greater once available to be spent outside the United States. The year of 1914 can be considered the point at which the United States would never be second in the world again.” (Axon, 32) Europe was stricken with war and the United States was turned to for supplies. The “wealthy European countries were ravaged by war because of casualties, economic losses, and expensed of war over four years.” (Axon, 33) The United States only was in the war for a year and did not have its country
Kyle Tenisci
Dr. Greason
HS 310-52
13 May 2013
1 The year of 1929 is marked by the Stock Market Crash in which most consider to be the beginning of the Great Depression. This was not the sole cause of the Great Depression, though. The Stock Market Crash was caused by an economy that was not stable enough to handle the high stock prices. The Stock Market Crash helped bring on the Great Depression which forced the United States government to make changes in the regulation of stock exchanges, providing much greater protection for investors.
The United States was a young nation and was not always as powerful as it is now or was in 1929. The United States was formed from European citizens who wanted to start their lives over. So the United States had relatively little money compared to the financial status of the rest of the world. London at the time was considered the center of finance. The United States borrowed money from England and other countries to spur its industry. By 1960 it seemed that the United States would inevitably be the world 's most important business and financial power. The Civil War provided a boost for industry, which jump-started the gradual shift of financial power from London to New York. The United States had a valuable asset in the form of land. “The United States was forced to develop itself before it could worry about competing with the world. Hence, the amount of capital was far greater once available to be spent outside the United States. The year of 1914 can be considered the point at which the United States would never be second in the world again.” (Axon, 32) Europe was stricken with war and the United States was turned to for supplies. The “wealthy European countries were ravaged by war because of casualties, economic losses, and expensed of war over four years.” (Axon, 33) The United States only was in the war for a year and did not have its country
Cited: Galbraith, John Kenneth. The Great Crash of 1929. Boston: Houghton Mifflin Company. 1972. Publishers. 1989. Print McElvaine, Robert S