The Great Depression began with the Stock Market Crash on October 27th 1929, and then led to a series of events that further worsened the situation. The United States economy entered a regular recession, or economic decline, during the summer of 1929. Consumer spending dropped, products began to pile up, and production slowed. At the same time, stock prices began to rise, and soon, reached staggering levels. On October 24th 1929, the stock market finally exploded when investors began trading in shares all at once. 12,9 million shares were traded that day, and it was known as "Black Thursday". Then, five days later, on "Black Tuesday", 16 million more shares were exchanged after a wave of panic swept over Wall Street. All of those shares that were traded in ended up being worthless, and all of the investors who invested those shares and bought stocks were completely wiped out. Consumer confidence was shattered in the wake of the stock market crash. The decline of spending and investment led factories and other businesses to slow down production and construction and start firing workers. Those who were fortunate enough to stay employed had lowered wages and decreased buying power. Many Americans were forced to buy on credit, and those who did fell into debt, while foreclosures and repossessions began their rise.
Millions of Americans protesting against foreclosures.
A home, foreclosed after the owners were unable to pay their bills.
A newspaper article about the money that the investors lost.
A newspaper article about Black Tuesday and the Stock Market Crash.
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