Essay heading: Depression Makes Good Theatre

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American History

 

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Date added:

July 15, 2003

 

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18 / 4966

 

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Companies continued to make much more of their products than people were buying. Since their items weren't selling, they started laying people off. People without jobs tend to purchase less than people with jobs, and so the market base shrank. Oddly, stock prices continued to rise as more people purchased stocks, predominantly on margin...
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Oddly, stock prices continued to rise as more people purchased stocks, predominantly on margin. (Axelrod 238) This was a bad thing. As summer became fall in 1929, the prices in the stock market began to seesaw uncontrollably. I imagine the unsteadiness of the market terrified a great many people, especially the large number who had purchased their stocks on margin and had yet to earn the purchase prices from them to pay their substantial loans...
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