Question

The stock market crash of 1929 was a direct result of

Answer 1

a period of excessive speculation. The collapse of the stock market revealed that the much-trumpeted economic prosperity of the 1920s had been built on weak foundations. By this period, production had already declined and unemployment had risen, leaving stocks in great excess of their real value. Government policies throughout the twenties, such as high tariffs, soft enforcement of anti-trust laws, the absence of checks on speculation in real estate and the stock market, contributed to the implosion of the Great Depression.

Answer 2

The stock market crash of 1929 was a direct result of an underproduction of goods in the economy.

Further Explanations:

The “Stock market crash” of 24th Ocober1929was the consequences of the “Great Depression” that prevailed in the United States during that era. It created havoc as due to the sudden crash of the market, the shareholders sold their shares at minimal price. It was estimated that the nation lost almost 396 billion dollars as of today that was more than the total worth of the Second World War. The decline caused bankruptcy and severe economic difficulties, including reduction of credit, business cessations, firing of employees, and other depressing events.

One noteworthy reason behind the crash was the underproduction of goods  in the economy due to the strategies adopted by PresidentHerbert Clark Hoover. His assurance speech generated mess in the share market that resulted cheapest share to touch its crest. This rise of worth even beyond its genuine value resulted in the speculation and unlocked the path of the stock marketcrash. Hoover though was warned about this emergency but he unnoticed it and engaged himself in the employment of the “Federal Reserve System”.

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Answer Details:

Grade: High school

Subject: US History

Chapter: Great Depression

Keywords: Stock market crash, Great Depression, United States, havoc, shareholders, minimal price, Second World War,credit, business cessations, firing of employees,Herbert Clark, speculation, Federal Reserve System, employment