Black Tuesday

The day the stock market crashed

By: T. J. Geathers


The stock market crashed on Tuesday October 29, 1929. All of the banks in the world were closed except for the ones in Japan. This day is know as Black Tuesday. It is called "Black Tuesday" because everyone tried to take all of their money out of their stock market investments at the same time. Black Tuesday is also know as the beginning of the Great Depression.
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Why did Black Tuesday happen?

Before "Black Tuesday" this time was called the Roaring Twenties. People were wealthy and had a lot of money. Stock prices climbed really high and people began to think that something was wrong with the stock market. People started to take their money our of the stock market. The Dow Jones had increased for 8 years. In less than 8 weeks between early September and the end of October 1929 the stock market lost 40% of the total value. The market continued to fall for years after Black Tuesday. The market reached the high of 386.10 in September 1929 to the low 40.60 on July 29, 1932. The market had lost 89% of the value. A total of 30 billion dollars overall and $14 billion on Black Tuesday.

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Many people in many different countries suffered because of what happened on "Black Tuesday". International trading dropped 50%. Unemployment in the United States dropped down to 25% and in other countries it was at 30%. Construction, farming, mining, logging suffered the most. Many people were homeless and left to life in Hooversvilles. These were shantytowns where people lived in cars, boxes and whatever they could find.

How did America recover from Black Tuesday?

The Japanese attacked Pearl Harbor on December 7, 1941. The United States had to borrow over a 1 billion dollars to build up the military. The United States economy jumped up by 50%. By 1942 the unemployment rate was down to only 5%.