The Great Stock Market Crash in 1929

The Great Stock Market Crash in 1929

It might be accurate to say that the New York stock market crash in 1929 is one of the most memorable affairs in American economic history. During the period from after the First World War to the stock market crash in 1929, about one decade, the US had experienced an unprecedented economic boom because it came out of the war with less damage than European countries (Harris, 1988). What is more, mass production and innovation helped make many things such as cars and electrical appliances generally available and affordable. The higher the economy soared, the more the price of stocks went up. Therefore, it was widely believed at that time that people could get money by simply investing in stocks. As proof, a person who had General Motors stock worth $10,000 in 1920 could have received no less than $ 1,500,000 by 1929 (Blumenthal, 2002). The selling and buying of stocks was nearly unrestrained in the United States. Although several people antici...