STOCK MARKET CRASH
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Summary
This PBS film, America: Documentary Film manifested how the false prosperity of America was being shown through the growing stock market. The term" Bull Market"(textbook) was used to describe the rapid growth of stock value in the exchange building on Wall Street. While more and more people were buying stocks without knowing the failure to come of the stock market. As business began to slowly decrease in sock values due to the installment plans, share holders were quickly selling stocks which began to decrease the values more and more, so more people began selling stocks which caused the lose of over $10 billion. |
Growing Economy
No one single event caused America to go into a depression as severe as the one after the stock market crash. Certainly the stock market crash alone did not cause it. In truth, the stock market crash was the result of continuous carelessness for America's economic well being. The idea of Laissez Faire, caused the government to not make any economic decisions for America, and allowed the rapid growth of big corporations, which president Roosevelt tried so hard to prevent. The corporations were producing more and more products for consumers to buy, so they came up with a brilliant new idea for "Installment Plans". These installment plans allowed average, or below average income citizens to make purchases, while promising to pay it later, "despite not having the financial means to really pay for it."(textbook). As the credit for each person built, the bills became more and more overwhelming. Citizens began investing in stocks which helped to increase economy street while slowly leading to a great drop in America's economic succession. |
Billions Lost
With the lack of government stopping the power of growing business, along with the installment plans and decrease of stock value, its no wonder how America's economy dropped so drastically. The veil that the media and stock market draped over the heads of the people was that the economy was very prosperous and was worth investing in. When really there was an income gap between the wealthy and poor classes as shown in the "getting ahead of the band wagon" political cartoon on the False Prosperity page. These events all together without help from the government due to its Laissez Faire and Rugged Individualism philosophies caused the stock market crash to be so severe. After all the stocks were virtually destroyed in the matter of hours, in total more then $10 billion were lost on that day. The government's inactivity was to blame for this massive decrease in economic succession, "if the government kept its hands off the economy, the nation would prosper", president Hoover stated, which in the end resulted in the biggest stock failure in American, and world history.
With the lack of government stopping the power of growing business, along with the installment plans and decrease of stock value, its no wonder how America's economy dropped so drastically. The veil that the media and stock market draped over the heads of the people was that the economy was very prosperous and was worth investing in. When really there was an income gap between the wealthy and poor classes as shown in the "getting ahead of the band wagon" political cartoon on the False Prosperity page. These events all together without help from the government due to its Laissez Faire and Rugged Individualism philosophies caused the stock market crash to be so severe. After all the stocks were virtually destroyed in the matter of hours, in total more then $10 billion were lost on that day. The government's inactivity was to blame for this massive decrease in economic succession, "if the government kept its hands off the economy, the nation would prosper", president Hoover stated, which in the end resulted in the biggest stock failure in American, and world history.