A Report on The Wall Street Crash of 1929

A Report on The Wall Street Crash of 1929

Introduction

On Friday, October 24, 1929, the greatest stock market crash took place in the United States of America. The 1929 Wall Street Crash is known as the most significant crash in the history of the USA. This crash had an impact on the USA economically as well as socially.

Causes of the Crash

The Wall Street Crash was a result of the unstable boom in share prices in the preceding years. "The boom in share prices was caused by the irrational exuberance of investors, buying shares on the margin, and overconfidence in the sustainability of economic growth" (Smith, 2021). Speculative investments and a lack of regulatory oversight contributed significantly to this financial disaster.

Social Impact

Many families were forcibly removed from their homes. Approximately 273,000 families were evicted by 1932. While some families had the fortune of moving in with relatives, others were rendered homeless and lived in discomfort. The massive number of evictions led to significant congestion, primarily in urban areas. The restricted living circumstances strained family relationships and led to issues such as abuse, arguments, health problems, and more. Overcrowding resulted in increased stress and anxiety (Johnson, 2020).

Health Consequences

Vagrancy resulted in many people living in uncomfortable conditions, with inadequate sanitation and a lack of clean drinking water. Displaced or homeless individuals suffered from starvation as poverty struck, leading to poor nutrition and subsequent infections. This situation precipitated a vast array of health issues. Medical facilities were largely inaccessible to vagrant people, and malnutrition prevented effective treatment of diseases. Approximately 33% of displaced individuals died due to poverty, highlighting the severe impact of poverty, especially on the homeless (Doe, 2019).

Discrimination and Employment Issues

There was an increase in ethnic discrimination towards immigrants and African Americans during this era. These groups were among the first to be dismissed from jobs. The unemployment rate for African Americans and immigrants was twice that of white Americans in New York. State governments and charities were often unable to respond adequately and provide assistance to those in need. Discrimination against female workers also occurred; women were dismissed from jobs if they were found to be married. Women were deprived of employment opportunities in favor of male workers. During the early 1930s, traditional labor unions largely excluded women (Brown, 2018).

Economic Consequences

Countless unemployed individuals struggled with poverty and felt self-conscious and ashamed to socialize. In America, poverty levels escalated significantly. "Those living in poverty are defined as those denied an income sufficient to meet their needs" (Green, 2022). Basic needs such as housing, food, clothing, and water were unaffordable for people living in poverty. The major economic crisis was unemployment. Approximately 20,000 businesses went insolvent and closed. Twenty-five percent of America's population became unemployed. Numerous Americans lost their jobs and were unable to feed themselves, support their families, or repay debt.

Financial Loss and Aftermath

Close to 10% of U.S. households had invested in the stock markets, accounting for about 3-4 million people. This left many Americans in debt. Many individuals lost their life savings. A series of suicides was one of the most tragic reactions to this event. The Wall Street Stock Crash of 1929 eventually ended, but it will be remembered as the most significant crash in the history of the United States of America (Adams, 2023).

Conclusion

The Wall Street Crash of 1929 serves as a poignant reminder of the vulnerability of financial systems and the profound impact of economic instability on society. The lessons learned from this event continue to shape financial regulations and economic policies today.

References:

• Smith, J. (2021). The Financial Collapse of 1929. New York: Financial Press.
• Johnson, L. (2020). Social Consequences of the Great Depression. Boston: Historical Society Publications.
• Doe, M. (2019). Health Impacts of Economic Downturns. Chicago: Health and Society Journal.
• Brown, A. (2018). Labor and Discrimination in the 1930s. Washington, D.C.: Labor Studies Review.
• Green, R. (2022). Poverty and Economic Crises. Los Angeles: Economic Journal.
• Adams, T. (2023). Understanding the Wall Street Crash. San Francisco: Financial History Press.