The Crash of 1929 & The Great Depression (PBS) 1of6

Summary

The script recounts the 1920s economic boom, culminating in the 1929 stock market crash. It highlights the decade's optimism, with ordinary Americans investing in stocks, driven by the belief in perpetual prosperity. The narrative features wealthy figures like Jesse Livermore and the consumer revolution's rise, including new inventions and credit systems. The script also touches on the power concentrated among a few businessmen, setting the stage for the crash that shattered the illusion of endless growth.

Takeaways

• 📈 The script describes the stock market crash of 1929, which was a pivotal event in financial history.
• 🎉 The 1920s was a decade of prosperity and optimism, often referred to as the 'New Era', where people believed in endless growth.
• 🎵 The mood of the era was captured by the hit song 'Blue Skies', symbolizing the positive outlook of the time.
• 💼 Ordinary Americans began investing in the stock market, which was a new phenomenon leading to widespread participation.
• 📉 Stock values had been rising for almost eight years, creating a false sense of a perpetually rising market.
• 🏛️ The wealthy, like Jesse Livermore, lived extravagantly, setting a standard that many aspired to.
• 💼 The era saw the rise of bankers, brokers, and speculators as celebrities, reflecting the importance of the stock market in society.
• 🌐 The economy was changing with the dawn of the consumer revolution, introducing new products and technologies.
• 💳 Consumer credit became a way of life, allowing the average worker to borrow money and fueling consumption.
• 🗣️ Politicians like Herbert Hoover promised to banish poverty, reflecting the widespread belief in permanent prosperity.
• 🚀 A few wealthy men, like William C. Durant, had immense power over the market, influencing stock prices and the economy.

Q & A

What was the mood of financial leaders on New Year's Eve, December 31st, 1929?

Financial leaders were celebrating what had been a decade of prosperity and boundless optimism, believing the party would last forever.

What was the term used to describe the economic outlook of the 1920s?

The term used to describe the economic outlook of the 1920s was 'the new era', which was characterized by optimism and the belief in a perpetually prosperous economy.

What was the significance of the song 'Blue Skies' in the context of the 1920s?

The song 'Blue Skies' symbolized the optimism and positive outlook of the 1920s, reflecting the general belief that everything was going to be great.

How did the stock market perform in the late 1920s?

Stock values had been rising for almost eight straight years, creating an atmosphere where it seemed there were no upper limits to growth.

What was unique about the stock market during this period that allowed ordinary Americans to invest?

It was the first time many ordinary Americans began to invest in stocks, attracted by the rising stock values and the potential for easy wealth.

What was the lifestyle like for those who made fortunes in the stock market during the 1920s?

Those who made fortunes, like Jesse Livermore, lived extravagantly with multiple homes, private railroad cars, and yachts, enjoying a lifestyle akin to royalty.

What promise did Herbert Hoover make during his presidential campaign of 1928?

Herbert Hoover promised that with the continuation of the policies of the last 8 years, poverty would be banished from the nation.

How was the American economy described post-World War I?

The American economy was described as being intact and strong, with the dollar being dominant, making it the only strong country in the world.

What was the significance of the consumer revolution in the 1920s?

The consumer revolution marked the dawn of a new era where inventions like radios, refrigerators, and air conditioners became mainstream, and consumer credit became a way of life.

What was the term used to describe the belief in an everlasting economic boom in the late 1920s?

The term used was 'permanent prosperity', which was a term often heard in the late 1920s, suggesting an age of unending economic growth.

Who were some of the wealthy men that dominated Wall Street during the 1920s?

Men like William C. Durant and Jesse Livermore dominated Wall Street, amassing fortunes through stock speculation and market manipulation.