What Caused The Stock Market Crash
Imagine waking up one day and all of your life savings is gone: your money, your job, and soon your house. Occurrences like these happened to many people and families in the years following and during the stock market crash. People lost their jobs, businesses were forced to close, houses went up for sale, and all hope was lost. Furthermore, the crash of the stock market affected many different aspects of the world including citizens, the United States economy, and places outside the United States tremendously. At the time when the stock market crashed President Hoover was in office and therefore blamed for the start and most of the effects of the stock market crash. In 1929 the stock market completely collapsed (“Stock Market Crash of 1929”).
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People and families were more or less astonished by the events that had taken place and shocked at how quickly it had unfolded. While some citizens were able to make their way to a bank before it closed, most were more unfortunate and lost all their savings. Families who did not manage to withdraw their money were forced to scrounge for money around the house or work at a very low pay at businesses that had not gone bankrupt yet (“Global Impact 1929-1939”). Although some beat the rush and acquired their money in time, life was still not …show more content…
However, possibly the largest problem and biggest contributor to the crash was the government and economy itself. Many citizens at the time, then and now, blame President Hoover for not aiding the economy and expediting its wealth (“Global Impact 1929-1939”). Citizens who had lost their house and everything with it, now lived in Hoovervilles or poor shantytowns. The people who lived in these poor communities and had a job attempted to provide for not only their family, but other families living in the towns with them. At the time Keynes, creator of Keynes economics, said, “Economists set themselves too easy, too useless task.” (Fox). Keynes, along with a large portion of the United States citizens, were fed up with the government and President Hoover. In order to correct the economic system, John Keynes proposed his own idea and began spreading it in an effort to popularize it. However, Keynesian economics were never fully implemented but ideas were used to pull the United States out of the great depression (Fox). With the large effect of the crash of the stock market on the United States economy, it also affected the countries partnered with the United States
People and families were more or less astonished by the events that had taken place and shocked at how quickly it had unfolded. While some citizens were able to make their way to a bank before it closed, most were more unfortunate and lost all their savings. Families who did not manage to withdraw their money were forced to scrounge for money around the house or work at a very low pay at businesses that had not gone bankrupt yet (“Global Impact 1929-1939”). Although some beat the rush and acquired their money in time, life was still not …show more content…
However, possibly the largest problem and biggest contributor to the crash was the government and economy itself. Many citizens at the time, then and now, blame President Hoover for not aiding the economy and expediting its wealth (“Global Impact 1929-1939”). Citizens who had lost their house and everything with it, now lived in Hoovervilles or poor shantytowns. The people who lived in these poor communities and had a job attempted to provide for not only their family, but other families living in the towns with them. At the time Keynes, creator of Keynes economics, said, “Economists set themselves too easy, too useless task.” (Fox). Keynes, along with a large portion of the United States citizens, were fed up with the government and President Hoover. In order to correct the economic system, John Keynes proposed his own idea and began spreading it in an effort to popularize it. However, Keynesian economics were never fully implemented but ideas were used to pull the United States out of the great depression (Fox). With the large effect of the crash of the stock market on the United States economy, it also affected the countries partnered with the United States