Boom Bust and Recovery Essay

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Do you agree with the view that the Great Crash in share values in October 1929 had a very limited impact? The Wall Street Crash in October 1929 is arguably one of the most significant events in America’s history. The Great Crash itself took place on Tuesday 29th October, commonly known as Black Tuesday. Altogether 16,410,030 shares were sold and the New York Times Index fell a further 43 point, from the 12 points which it had fallen on the previous Tuesday. Throughout the chaos of Black Tuesday the Exchange closed, for it then to be reopened once on the Thursday afternoon for the remainder of that week. Prices of stocks at the same time of all this chaos continued to fall; in just over a few weeks as much as a scandalous $30 billion had been lost. The significance of the Crash at the time was hotly debated, as it can be argued that there had been warning signs signalling for the US government to keep an eye on the economy. The three sources which are debating the question been asked differ. Source P general suggests that the Great Crash had very limited impact. Whilst Source O suggests that it had wider significance then has been stated. Additionally, source N goes on to suggest that they were various issues regarding the use of the Bull Markets in the 1920s which led the crash to been more significant. Overall, with the question been asked I can agree with the view that the Great Crash had very limited impact as they already had been warned in previous years that the years of prosperity would be short lived. An argument to suggest that the Great Crash had a limited impact can be found in both source P and O when it states that '97.5% of the American population in 1929 had no stocks'. This quote is suggesting that because not many people had invested in the stock market that the actual crash would not directly impact a massive portion of the population.
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