The Stock Market Crash of 1929 The nineteen twenties was a time in America’s history of an unreal amount of success. The stock market was going through the roof, stocks doubling in price, prosperity was everywhere, and America seemed to have the formula for exceptional success. As success stories continue to spread, people became hungry for more power. Blinded by greed and flashy items, professionals that worked for large firms used money to manipulate the market. In the film series, American Experience, PBS explains many of the events that occur before the Crash of 1929.
Consumption skyrocketed as Americans relished in the heyday of western capitalism. The environment that emerged from this climate helped to bring about an “orgy of speculation” sending Americans scrambling for easy profits in the bull market of the 1920s. However through excessive leveraging, borrowing on margin, and a restrictive economic policy, the boom soon turned to bust. The belief that high price levels could be maintained indefinitely was proved drastically wrong in what will forever be remembered as one of the worst economic disasters in the annals of American History. What was set in motion in late October 1929 can be traced back to the brewing market conditions and economic environment of the very decade it which the crash took place.
Unemployment never exceeded 900,000 in this period which brought comfort to a generation who had not forgotten the perils of the high unemployment in the 1930’s. In addition to this, Butler produced a ‘give-away’ budget that provided the middle classes with £134 million tax cuts. The Keynesian economics at the time were extremely popular and were the cause of this huge surge in affluence and living standards. The prosperity was clear to see everywhere, people had more money than ever before, which was summarised in Macmillan’s ‘never had it so good’ speech. The Keynesian economics at the time were extremely popular and were the cause of this huge surge in affluence and living standards.
Explain why the US economy ‘boomed’ during the 1920’s? An economic boom is the rapid growth in a country’s money making that leads to increased prosperity and wealth. The 1920’s was a time of extreme highs and lows, a time of dramatic changes in society and many new inventions. Many American industries boomed in the 1920s, with the economy doubling in size. This economic boom was based around consumer goods-luxury items that many Americans wanted to buy but didn’t really need.
The failures of economic policies employed during the Great Depression left the American government more open to the ideas of Keynes. In the year 1929, the Wall Street stock market crash triggered a depression so severe, the likes of which have yet to be seen. The response by the American government at the time, led by president Herbert Hoover, was a ‘do nothing’ ‘laissez faire’ approach believing that the markets would right themselves, in allowing better businesses to take the place of the failed ones. This was not looked upon favourably because, as Clarke put it, “although market forces ensured a permanent tendency to a full employment equilibrium, market forces took time to operate”.  Where classical economists had argued that during a depression, governments should raise taxes and strive to balance the budget through reduced spending, Keynes contended that government should stimulate demand through reduced interest rates, tax cuts and
The Causes and Effects of the Great Depression On October 29, 1929, the stock market crash set in motion a series of events that led to one of the darkest periods in American economic history, the Great Depression. The Depression lasted for over a decade and the United States did not fully recover until 1941. While Franklin D. Roosevelt’s New Deal is mostly credited for getting the country of the depression, the main factor that helped was the countries entrance into World War 2 which provided many jobs such as munitions and ammunition that gave jobs and helped re-stimulate America’s economy. We know how the United States has fared since recovering from the depression, but what really caused it? The first cause actually started in the 1920’s.
As a result of this I am going to be looking specifically at the changes in America that took place in the 1920’s and how these affected people’s everyday lives. Before presenting any of the evidence my own opinion is that the 1920’s for a lot of people were a very good time to live, however for a lot of poorer people, the 1920’s boom only made them poorer and the rich poor divide only got bigger. Firstly, I am going to be looking at the people who benefited from the economic boom, or as some people would call, the winners of the 1920’s. After the war, the Americans emerged victorious and this gave them a rosy outlook on the opportunities they could create for themselves and gave them more confidence that they were strong as individuals and as a nation. The main change that happened in the 1920’s was the growth of industry.
Despite the numerous positives for Britain many other colonies felt the negative effects of the British empire sparking many conflicts in the past 200 years. Britain prospered financially throughout the many years of having an empire. Britain developed trade links between many countries, source B shows how these links benefitted Britain. The source shows that the years between 1700 and 1900 saw a dramatic increase in the amount of goods being imported and exported from Britain. Up until 1900 the source shows that Britain was in a very good position when it came to trade as their exports greatly outweighed their imports which in turn would make a steady profit for Britain.
In the 1920’s there were several social and cultural changes. Before the twenties, thrift and frugality were the true values and consumption with abandon was bad.  There was a huge rise in culture, leading to economic and social changes. The development of popular culture included the rise of literature, radio, music, dance, theater, sports and recreation, art, and motion pictures. In order for corporations to make money, they produced things related to the rising popular culture.
As it was mentioned before, The Great Gatsby, is a classic that talks about love, class struggle and the morals that existed in the 1920’s in the United States of America. Even though the themes concerned in this novel are very general the reader will get a deeper understanding of the romance if the historical context is examined. F. Scott Fitzgerald wrote this American classic in the beginning of the 20’s, a time of profound change in U.S. society. The times that followed the World War I, between 1914-1918, is called The Jazz Age, it ended in 1929 with the stock market crash. Being victorious in the war, America experienced an economic growth, ate least for those who belonged to the upper class, the stock market, corporate profits increased