Through the course of the 1920s, American stock market grew rapidly and attained its peak by August 1929. However, by then there was a major decline in production and a rise in the rate of unemployment. There was consequently a drop in the wage rate. This led to a fall in demand for products and eventually a drop in the revenue collected. Therefore, there was a major collapse in the economy of US. There was a major decrease in the stock prices. The US experienced a major free fall in the market and led to major loss of billions of dollars. Therefore, investors were wiped out leading to a fall in the economy of US. Americans were forced to sell their life savings and businesses. This is because loan givers called in their loans and people scrambled to get money from whatever source. This made the people lose confidence in the American market and without this, it is impossible to have a firm economy. Therefore, this led to a major fall in the economy.
Stock market crash and the great depression 3 In summary the crush in the stock market in US led to diverse effects in its economy. However, there was implementation of strategies the led to regrowth of its economy.
Stock market crash and the great depression 4 Bibliography Mishkin, F. S., & White, E. N. (2002). US stock market crashes and their aftermath: implications for monetary policy (No. w8992). National bureau of economic research. Modern America poetry. (2015). About the great depression. Retrieved from:
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