In the 1920’s many people invested in the stock market. The stock market is how companies raise money to grow larger. It sells shares of stock, a piece of the company. A person who buys the share is buying a part of that company. The people holding shares can make profit if the company makes money or loss money if the company does not do well. Many people borrowed money from loan companies to buy stocks, in the early 20’s the prices of most socks went up and up.

When the soldiers returned to the United States after World War 1. They found more money available and new products to spend it on. Things such as cars, record players, appliances such as washing machines and refrigerators, canned food, ready made clothes, movies and radios. Others began investing in the stock market. In 1920 Warren G. Harding was elected president. His campaign saying was “return to normalcy” after the war. Congress voted in a tax on good from foreign countries. Coolidge would do nothing to control how the money was being spent by business. People openly broke the law, judges were and police became corrupt because they took bribes from people. Other changes were many chain stores grew, women began wearing

In the late 1920’s problems began to show. American companies were making more goods that American buyer wanted. Employees were laid off. As people lost their jobs they were not able to pay their debts. They could not pay back the loan companies. Many were forced to sell their homes and farms. The people who had stock tried to sell them. A panic set in. Soon everyone wanted to sell their stock at the same time. On October 29, 1929 the stock market hit its lowest point.

The 1930 was one of the hardest times for everyone in the United States. First the crash of the stock market with caused many people and the government to loose billions of dollars. This spun the country into disarray. Then the crash was followed up by the Great Depression because there was no money in the economy. This created a lot of poverty and people did not have any money. The job was market was terrible and the unemployment rate shot out the roof. The government did not want to spend any money to help the economy pick up. The United States of America, the most powerful country in the world had been knocked down to its knees by events that should not have even taken place. The world had been in shock and also it financial distress of there own from the effect of World War 1. The United States was in this mess until the 1940 when World War 2 began and the world started buying products from the U.S. the all the sudden jobs became needed and the economy turn back around and start up to make lots of money. I think it is somewhat odd that a terrible event such as a war is the reason for such a good thing to happen for the economy to pick up and had the United States working at full power.

One week in October 1929, there was a true panic and many rich people became poor is a single say. It began on Thursday, October 24, 1929. 12,894,650 shares changed hands on the New York stock exchange a record. To put this in perspective, the previous high was on March 12, 1928 when a total of 3,875,910 shares were traded.

Some topics in this essay:
Warren Harding, Wall Street, September October, World War, Delano Roosevelt, Dow Industries, Market Crash, American Finally, Hitler United, France Fed, stock market, world war, stock prices, october 1929, war 1, world war 1, people lost, crash stock market, loan companies, market american, stock market crash, stock exchange, depression money, economy pick united, people lost jobs,