“The Roaring ’20s were marked by prosperity after World War I…Ladies bobbed their hair and displayed a more liberated demeanor. Prohibition brought the age of speakeasies and bootleggers…ended with a loud crash of the stock market in October 1929, which was the first signal of the Great Depression to come,” (Rosenberg par. 1).
Many events occurred in the era of the 1920s or “Roaring 20’s” that changed the lives of many Americans in many different ways. Wealth started to spread among Americans. However, one of the main causes of the Great Depression was the major Stock Market Crash of 1929.
At first, in the mid-1920s, the stock market in the United States was actually undergoing major growth (“Stock Market Crash of 1929” par. 2). This successful growth went on for about six months after President Herbert Hoover was inaugurated on January 1929 (“Stock Market Crash of 1929” par. 1).
Soon, however, the stock prices started to decline in September and early October. The stock market started to go downhill on October 18, 1929, because investors started to rapidly sell their stocks.
Fear and panic among the Americans set in on October 24, 1929. This day was known as “Black Thursday” (“Stock Market Crash of 1929” par. 1).
On “Black Thursday,” about 12.9 million shares were traded by the investors because of their fear of going bankrupt (“Stock Market Crash of 1929” par. 1).
However, later that day, a group of bankers gathered their own money in the stock market. This act convinced other people to stop selling (Rosenberg par. 22).
Black Thursday was not the only day that caused many Americans to panic. On the following Monday, October 28 (also known as “Black Monday”), the market closed down about 12.8 percent.
The next day, “Black Tuesday,” more than 16 million shares were traded which caused the stock market prices to fall even more (“Stock Market Crash of 1929” par. 2). This day became known as the worst day in stock market history.
Because the rate at which people were selling their stocks was so high, the stock market prices exponentially decreased (Rosenberg par. 28). From there, the stock market prices continued to decrease until November 23, 1929, when the prices started to slowly stabilize. (Rosenberg par. 29). Because of this stock market crash, many people lost all their money and many companies were ruined (Rosenberg par. 29).
Finally, it’s safe to say that the impact of the stock market crash in the year of 1929 was enormous, considering the number of people affected, not just economically, but mentally and emotionally.
Just like there was music in the 1920s, there are plenty of varieties of music to choose from today. Understanding the stock market is tricky, however, people continue to learn from their mistakes and evolve in a way where he/she won’t lose their entire savings as many people did in 1929 due to the stock market crash.
Living in the mid-1920s would definitely be fun and exciting, but living in the late 1920s would be tragic due to the stock market crash, which was one of the main reasons why the great depression occurred. It’s perfectly fine when people try to earn money by profiting from the stock market.
However, he/she should be smart and should know where they are investing in their stocks. Stocks can be tricky, but if the person knows how and where to invest, he/she will be well off. “In the years after the crash, regulations covering buying stocks on margin and the roles of banks have added protections in the hopes that another severe crash could never happen again,” (Rosenberg par. 31).
Rosenberg, Jennifer. “Booze, Bootleggers, Flappers, and the Adventurous 1920s.” Thoughtco., Dotdash, www.thoughtco.com/1920s-timeline-1779949.
“Stock Market Crash of 1929.” Encyclopedia Britannica, Encyclopedia Britannica, Inc., 27 Apr. 2018, www.britannica.com/event/stock-market-crash-of-1929.