The Boom of 1920s

Topics: Wall Street Crash of 1929, Great Depression, Economy of the United States Pages: 1 (375 words) Published: January 20, 2013
the boom in America was an electric time for most americans, life as just beginning but the life style of many americans led to the great depression. the first world war as the peek for most farmers because europe was in demand of agriculture and food. in order for farmers to meet the minimum requirements for the growing demand for food, machinery was invented such as tractors, but not all the farmers could afford the expensive machinery. many of the smaller farmers sold their farms to the larger farms and moved to the cities. but after ww1 europe no longer needed the supplies offered by the american farmers thus causing the supply to exceed demand. food prices fell dramatically causing the richer farmers not to make any profit. the glut of produce thus being one of the seeds of disaster. there was uneven distribution of wealth. people did not benefit from the boom included the african Americans, immigrants and native americans. the gap betwwen the rich and poor was too large and the people were either too poor or extrmly rich. the middle class was not there to balance the economy. the amount of americans oblivious to the effects and subtle causes of the great depression was increasing. the most immediate factor that threw the usa into the depression was the stock market crisis. many people became stock craze and this was speculating. ordinary people clamoured to partake in the boom. many people bought shares on margin this meant people bought large parts of shares on credit. banks could not control this situation because many banks were weak and couldnt have much power over the share crisis. banks continued to offer low interest on borrowed money. this encouraged people to buy more shares and to invest. prices of shares at the end of october fell sharply and thousands of people started to sell their shares. but the real shock came on black tuesday the 29th October 1929 the wall street crash. people lost millions and they could not repay their banks. banks became...
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