Choose 2 Effects of the 1929 Stock Market Crash
1) Economic Depression: The stock market crash of 1929 marked the beginning of the Great Depression, one of the most severe economic downturns in history. The crash triggered a chain reaction of events that ultimately led to a collapse in industrial production, high unemployment rates, and a significant decrease in consumer spending. Businesses went bankrupt, people lost their jobs, and poverty levels soared.
2) Bank Failures: The crash also resulted in multiple bank failures. As stock prices plummeted, many investors who had borrowed money from banks to purchase stocks were unable to repay their loans. This caused a widespread default on loans, leading to the collapse of numerous banks. The loss of confidence in the banking system further exacerbated the economic crisis and worsened the already dire financial situation for many people.