lot of Americans worked in and earned low wages. The economy relied on the rich and therefore the rich reaped the advantages of the billions of dollars America was making. the half of saw a 75% increase in their wages while the remainder of USA citizens only saw a 9% increase. Ford was making $14 million dollars a year, a ridiculous salary even in 2014, while
many Americans were making but a thousand dollars a year. the typical American couldn't afford everything that an upscale person could afford, in order that they relied on things like credit to urge what they wanted, a reason why the buyer society of the 20's help causes the Great Depression. The stock market crash on October 29, 1929, set in motion a series of events that led to the Great Depression, but in fact, the American economy and global economy had been in turmoil six months prior to Black Tuesday, and a variety of factors before and after that fateful date in October caused and exacerbated the Great Depression. With only loose stock exchange regulations in situ before the Great Depression, investors were ready to speculate wildly, buying stocks on margin, needing only 10% of the worth of a stock to be ready to complete the acquisition. Rampant speculation led to falsely high stock prices, and when the stock exchange began to tumble within the months leading up to the October 1929 crash, speculative investors couldn’t make their margin calls, and a huge sell-off began. While the good rise within the stock exchange (from 181 points in early 1928 to 381 points in September 1929) was fueled by optimism and false hope, the plunge was flamed by stark fear.
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- Spring '19
- Brianna Zandt
- Great Depression, Wall Street Crash of 1929