Question

The prosperity of the boom years led to the extravagant lifestyles for the wealthy which eventually led to the collapse of the wall Street stock market Do you agree with the statement? Critically discuss the reasons for the 1929 wall Street stock crash as well as the economic and social impact of the crash in USA.

Answer 1

To a large extent, this statement is true. The 1920s was a period in history in which extravagant lifestyles were the norm for the wealthy. People began to engage in mass consumption and consumerism. This led to overspending and to luxurious lifestyles, as the country experienced an economic boom.

This also led to people wanting to become rich quickly by speculating in the stock market. The financial decisions made during this era eventually led to the Wall Street Stock Crash of 1929, which led to the Great Depression of the 1930s.

During the Great Depression, many people lost their jobs, millions became poor and many others relocated to cities to look for work. The Great Depression led to the passage of several acts that promoted social welfare, which were collectively known as the "New Deal."