Objectives Discuss the weaknesses in the economy of the s. Explain how the stock market crash contributed to the coming of the Great Depression. Describe. - ppt download

No ad for bid response id: Cannot find ad by given id: Go Log In Sign Up. What would you like to do? How did the Stock Market Crash of contribute to The Great Depression and how big of an effect did it have? Would you like to merge this question into it?

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Edit Answer by Patrick Robinette. The stock market crash resulted in the loss of capital by businesses, and the loss of personal and investment income by individual stockholders. During the inflationary period of the 's, "paper fortunes" had built up, and many were bankrupted.

Without investment, companies could not produce, and without production, employment could not be maintained. Many people became impoverished and were fortunate if they still could afford food and shelter.

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The crash, therefore, kept the economy from escaping the depression sooner, by reducing both capital and jobs in most types of businesses. Was this answer useful? In Stock Market , The Great Depression.

Causes of The Great Depression | Great Depression Facts Effects

In Investing and Financial Markets. Because billions of dollars were lost, whole fortunes were wiped out in hours, many speculators who had bought stock on margin lost everything they had, and it caused contract … ions towards the money supply in the economy. October 24, was also coined the term 'black thursday' where new york stock shares crashed, and continued to plummet for the rest of the entire month. It marked the start of the Great Depression, the largest economic downturn in American history, causing millions to become jobless and thousands to lose their life savings.

Stock Market Crash of October - Social Welfare History Project

Pe … ople began going starving and living in bad conditions, until a series of government decisions believe it or not, gave jobs to people, and so did WWII. Eventually the American economy regulated itself. The Stock Market Crash of did not cause the Depression, it was the signal that there had been fundamental weaknesses in the economy and uneducated mania in the speculatio … n of stocks.

The Crash helped to trigger the decline in the economy. Middle class families lost their savings which meant they could not afford to purchase items which caused an increase in inventory, loss of profits to business, and layoffs of workers. Banks that had lent money to speculators went broke when the speculators could not pay their debts.

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Herbert Hoover had been in office less than 7 months when the great Wall Street crash of October , occurred. The exact date of the stock market crash was October 24, It was the start of the worst economic depression in the history of the United States. Choose a video to embed.