Black Tuesday’s Effects – Vy Nguyen
Known as The Great Crash, Black Tuesday had become an infamous, historical day that changed many American lives. This ominous day deeply affected the economy throughout the world. In the article 1929 stock market Crash, the authors stated that the first effect of Black Tuesday is the loss of people’s properties: “Instead, they could borrow money to buy the stock in hopes that its price would rise…” (Baron, Scinta, 34) People used all money they had to invest in the stock market and even borrowed money from others to buy stocks with the hope of making more money. Enhancing the effects, they not only perceived that they already had lost all of their properties but also got debts. Equally important, Black Tuesday can be considered as a beginning of The Great Depression which had highly affected the economy for 10 years. The entry studied summarizes the details of this horrible time period: “Black Tuesday marked the beginning of the Great Depression, a period of economic hardship in the United States lasting from 1929 to 1939.”(What Was Black Tuesday?) One of the examples was that people started to starve; they bought supplies on credit and they weren’t able to pay it back. This led them into debt and they got no more money to pay for their food. Furthermore, the crash of stock market on Black Tuesday brought the world’s economy down even more. A man once said: “By Australian stock market share prices had collapsed, and many industries had either closed or slowed down because of the lack of demand.”(1929: Problems).
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This evidence proves that the effect of Black Tuesday swept through Australia, too. It highly affected Australian workers’ lives: their wages were dropped and the unemployment rate rose up because their companies weren’t able to pay for their wages. In conclusion, Black Tuesday marked an ominous period of economic downfalls. The crash of the stock market greatly affected all the lives of Americans for a plethora of years. Therefore, people can look back to that period and avoid repeating the same mistake again.