What Caused The Stock Market Crash In The 1930's

The Stock Market Crash was the one of the most substantial events to happen in America during the 1930’s and in all of American History. “The Great Crash”, as it is called by many, changed the way American stock market was run and the American way of life. This pushed new rules and regulations to be put into place that we could not do without today. The Stock Market crashed eighty percent in less than two weeks, leaving most stocks worth nearly nothing of what they used to be worth. The stocks fell because they were worth so much that everyone decided to sell out and make back more money than they originally put into the market. The people who decided to wait and see where their investments would go in a few months or years, lost virtually all of their money in a matter of weeks. They lost all that they had invested their lives savings in, those stocks only had twenty percent of what they previously had. The banks pumped the money that the people were depositing straight back into the market without any protection in case the market had its falling out. This caused a massive inflation into the
The one percent of people in the upper classes pay was 650% greater than the eleven percent of the people in the lower to mid-lower classes pay (Arensen). In their time much like our own there was a one percent, but their one percent lost all of their money too. The one percent of the people who fueled all of the small businesses in America ran out of money. This pushed the small business out of business and caused the people to run out of money. Imagine all of the small business in your town closing. The prices of all goods and services would run through the roof and make everything unbelievably expensive. Today the market of goods is protected from the raising of the prices. Through the thirties these laws and regulations were being written and put together to protect