As we have been learning about in class recently, the end of the roaring 20s consisted of a massive crash in the stock market. Many believed that the market would simply continue to grow forever, while others realized that the kind of explosive growth experienced in the 20s could not last long.
There were a huge variety of factors that could be attributed to the crash, but some were assuredly more important than others.
For starters, the "buy now, pay later" mindset became popular at the time -- meaning that many Americans had amassed great sums of debt.
Many other factors also helped -- automobile sales decreasing, less steel production, and eventually stocks reaching a plateau.
What do you guys think was the biggest cause of the crash? Leave your thoughts below.
I think that the ease of borrowing is perhaps the biggest cause of the crash. There really was no "regulation," so people were able to spend money that they did not have. This is what caused the endless down-spiral of problems once people reached the realization that they needed to pay off the debts that they had.
ReplyDeleteI agree that it was caused by debt, and people taking out money they didnt have. Another reason is that people took out all their money once stocks went down, resulting in the huge crash.
ReplyDelete