The U.S. Stock Market Crash in 1929 did affect other nations because they depended on United States investment capital that dried up after the crash. Great Depression and the stock market crash are never far from economic leaders' ideas in determining what to do in more current declines.
EXPLANATION:
There are many more effects of the U.S. Stock Market Crash in 1929. You can see the list below:
• Black Tuesday and the Crash
Many people and companies had been extremely endowed in the market, and some strived to make basic pay or purchase workers after the market bankruptcy. Some banks, which had endowed consumer payments in the rising market, also were pushed to stop their business, costing some investors their life funds. Longer lasting impacts of the stock market crash of 1929 involved grander financial regulation and government supervision of the nation's economy.
• The Securities and Exchange Commission
The bankruptcy of the stock market and its tragic impacts made customers distrustful of the financial sector. At the time, the stock market was fairly loose, making it effortless for impostors to swindle investors with dishonest investment prospects.
• The Federal Deposit Insurance Corporation
Another agency built in the rouse of the crash of the stock market is the Federal Deposit Insurance Corporation. This agency protects deposits in banks and also has a role in policing financial institutions. It was established in 1934 as the response to the bank breakdowns after the crash and claims no investors have ever lost their FDIC-insured funds.
• FDR and the New Deal
Meanwhile, the Great Depression started, Roosevelt won the election. Roosevelt and Congress soon founded several programs that are jointly called the New Deal. Regulatory groups, including the FDIC and SEC, also resume playing a crucial part in the economy of the nation.
The federal government multiplied its position in policing and supporting mortgage loans to increase access to homeownership and to determining the relationship between worker unions and employers with the new National Labor Relations Board, which still occurs today, and the Fair Labor Standards Act, which completed most child worker and warranted a minimum wage.
• World War II
Meanwhile, the emergence of fascism and Nazism in Europe had many reasons, at least some of the motives included economic strives in Germany, Spain, and other nations around the world as the global depression part.
• Subsequent Economic Crises
The Great Depression and the 1929 crash are not just merely economic crises which lead to changes in financial policy. The loan and savings crisis in the 1980s, which triggered the breakdown of about a third of the loans and savings—a type of bank—in the United States ran to harsher rules for FDIC regulation.
LEARN MORE
If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:
• What was an impact of the Great Depression on Germany? brainly.com/question/7356600
• How did the United States' entry into World War II affect the American economy? brainly.com/question/1980141
KEYWORDS : U.S. Stock Market Crash 1929, American Economics
Subject : History
Class : College
Sub-Chapter : American Economics History
