Great Crash of 1929

Great Crash of 1929 - Tran 1 Andrew Tran 323366 Per#5...

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Tran 1 Andrew Tran 323366 Per. #5 3/15/06 Describe the causes of the great crash of 1929. Why did it come so unexpectedly? At the beginning of the 1920’s, the era became known as the era of invention, age of reform, and was also the beginning of the great jazz age. With the United States continually striving to contend in the world economics, the U.S. wished to maintain their status as a world power. Such feelings were demonstrated when Congress passed the Fordney-McCumber Tariff Law of 1922, which rose foreign tariffs to an all-time high of 38.5%, as an attempt on balancing the prices of American and foreign goods. As America received a continuing flow of cash, prices rose dramatically in the stock market, resulting in a powerful sense of invincibility that soon led to panic as the stocks prices significantly dropped as foreign and American investors dumped their stocks. Thus, the great and unexpected crash of 1929 was caused politically, through poor political practices, ideals, and leaderships by the presidents; economically, with horrible investment policies and the nation too deep in debt; and socially, over-speculation caused people to unwisely believe the stock market will help them become wealthy. Under the presidencies of Warren Harding and Calvin Coolidge, the nation’s economy was based on the concept of laissez-faire economics, the idea that the government should not be involved with big businesses or trade. Therefore, anti-trusts laws were almost completely disregarded and corporations were given the opportunity to expand. Both Presidents Harding and Coolidge favored high tariffs such as the Fordney-
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This note was uploaded on 04/07/2008 for the course HIST 101 taught by Professor Wormer during the Winter '08 term at UCSD.

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Great Crash of 1929 - Tran 1 Andrew Tran 323366 Per#5...

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