Stock Market Crash
- During the 20’s, stock markets rose and people invested in them, assuming that they’d keep rising.
- The investments further inflated stock prices.
- The New York Stock exchange stopped rising in 1929 and people began selling stocks before prices dropped anymore.
- More people began selling and a panic set in and the stock prices of 30 largest publicly owned companies in the US had dropped 48%.
Ebb & Flow of Liberal Economic
At this point the government was at its peak point of capitalism, a pure free market, the economy was doing very well and many people were making a fortune investing money on the stock market with credit from the banks. There was no safety net for if things went wrong, so when the stock market crashed, most people could not pay back the most they owed to the banks and millions of people lost their entire life savings.