Themes in American History

According to www.thenagain.info, ” The leading theory regarding the cause of The Great Depression holds that it resulted from the stock market crash in 1929.  Prior to the crash, around the beginning of 1928, the Federal Reserve began raising interest rates due to financial speculation and inflated stock prices. Industrial production turned down in the spring of 1929, and overall growth turned negative in the summer. This prosperous decade had proven the old adage that all good things must come to an end, when a recession began in the summer of 1929.  In the two months before the crash, industrial production fell to an annual rate of 20%, and continued to drop well into the fall months.  “By mid-November, the market had declined by a half.” ”

I believe that, the prosperous decade, mostly due to the stock market success, represents an aspect of modernity achieved during the 1920s. On the other hand, Great Depression caused a lot of financial, political and cultural changes. This video show us, how people were optimistic in every aspect of their life, during the decade before the crash of the stock market and how evrything changes after.

Tags: 1920s, 1929, Great Depression, prosperous decade

Comments Off on The Great Depression Begins,1929