What effects did the Wall Street Crash have on American history?
Wall Street Crash 1920
- ChrispyLv 78 years agoFavorite Answer
The Wall Street Crash of 1929 brought on the Great Depression, which hit the middle class with a major knockout punch.
You see, in the 1920's many Americans began playing the stock market, especially those of the middle class. Whereas their parents and grandparents had invested in land and bonds of various types (generally low-yield), they saw people becoming millionaires overnight and wanted in on the action.
Unfortunately, in their naivete concerning high finance, they failed to reckon with other countries in the world, such as Germany.
With the financially crippling reparations to be paid under the terms of the Versailles Treaty following World War I and a printing press instead of a treasury, this particular nation was suffering from runaway inflation. Women would go to where their husbands worked during lunchtime in order to get money to buy food for supper. A billion Deutsche mark note had precious little purchasing power; if you were lucky, it might get you enough food for one day.
Of course, nothing happens in a vacuum.
Naturally other European countries--such as France and Great Britain, to whom the German government owed reparations (not to mention other countries as well)--weren't receiving them, which made their own finances shaky.
In the end, the US was one of the last nations to be affected by Europe's monetary crisis, and this is pretty much what fueled the Crash of 1929.
Now, the rich took losses, but enjoyed the security of having both ready cash and assets that could be liquidated to weather the storm, and the poor were so used to having nothing and getting assistance from charitable concerns that there was relatively little impact on these two groups.
It was, instead, the ones who had been speculating on the growth of their stocks and small bankers who bore the brunt of this financial crisis, and they, in turn, affected everyone else.
This led to a downward spiral.
Farmers couldn't meet payments on their land and equipment so foreclosures became common; factories closed, putting many men out of work; even professional people such as doctors and lawyers were hard put to collect fees owed them (in rural districts they often had to make do with payment "in kind" such as eggs, vegetables, fruit, milk chickens, or other livestock).
Men often had to leave their families behind as they traversed great distances to look for work. Boys and girls dropped out of high school in order to seek local employment, and churches and public charities were hard put to help all of the deserving people who came to them for aid.
The things I've outlined here were on a scale that we, today, can scarcely imagine, and they affected how an entire generation viewed work, money, and security.Source(s): social historian
- Anonymous4 years ago
So might want to you compromise or disagree that the commercial equipment is the most important situation in our usa NOW? you should be kidding because the undesirable American economic difficulty considered from outside (Europe) is getting extremely extreme. Lehman's financial ruin must be the most important failure of an funding economic corporation considering that i do not even understand, it replaced into depending in 1850, not the day handed by, and now it would not count number a cent. (Even worst than in the course of 9/11) I advise how are you going to clarify that numerous banks are filed for financial ruin? So this isn't a small signal of what's occurring over there... i wager Capitalism time is getting over. Sub-correct loan disaster is a huge evidence of a foul authorities and undesirable economic rules; I advise those who were in charged of checking or taking administration on what replaced into occurring, the position were they? i'm not saying that economic equipment isn't getting better and that i do not imagine it would want to take position quickly, because convinced human beings economic equipment or in different words money makes the international is going that you want it or not! besides i imagine American Supremacy is in probability, and the starting up of this replaced into 9/11, i have not considered a superpower being extra weak. They had to wreck the commercial symbols (twin Towers)? nicely now American economic equipment is being attacked too. So once you vote ''you should take the right determination'' in spite of that is!
- Anonymous6 years ago
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- Anonymous8 years ago
Which crash? 1929 1987 2008