the stock market crash of 1929
...y ten percent of the share costs up front and the remainder later. “Buy now, pay later” was the way of life (Blumer). Another main factor for the “Great Crash” was that stock prices were continually soaring. Shares of stock were being purchased and sold beyond their actual value. There was not much government involvement because prior to the 1929 crash of the market, the government did not play a role in business affiliated organizations or corporations. Approaching Black Tuesday, Theodore Roosevelt encouraged Americans to spend more money, and not to worry about what is happening in the economy. Everything will be fine. This became known as “Lassie Fare”. The Stock market crash helped bring about the Great Depression because more and more civilians were growing in debt. When the market was rising, consumers were able to place ten percent of the overall cost of shares down and then pay the remainder balance later on. With the collapse, people were forced to sell their then expensive shares for pennies to pay off their debt to the banks. Economic problems continued to deepen. President Herbert Hoover and his government officials responded to the crisis in a moderate tone at first. He let the problem sit and encouraged the people to continue doing their everyday things, and keep fueling the country. He encouraged big business corporations to keep its wages and production. Hoover was trying to keep money filtering through the country, hoping to revive the economy. Hoover advised public work projects, he established an Emergency Committee for Employment that coordinated voluntary relief efforts. The National Credit Corporation was established to help small banks issue loans. It was not until 1932 that Hoover took heavy action when he initialized the Reconstruction Finance Corporation that helped make loans to major economic institutions, and created public work programs to help pump money supply into the economy. President Hoover counted on outside support from other countries to bail us out of the depression, which however did not take place. So instead, he urged self...