Moving back in the time cycle to the decade of 1920-1930. The decade started with prosperity. The stock market went under historic expansion. Investing was seen as a quick way to be millionaire next month. Everyone from business tycoons to janitors were investing in the market. The prices were soaring. It reached its peak in August, 1929. However towards the end of the decade the market plummeted heavily. Around 12 million people were unemployed.
Toward the end of the decade, the production had declined, leading to unemployment . Consumers spending decreased and unsold goods began to pile up, yet the market was in bull state. On October 24, 1929, Black Thursday, people started to sell of the highly priced stock a record 12.9 millions share were traded that day. As the investors confidence decreased people started shutting down their factories and firing the workers. Moreover, the farmers couldn’t afford to farming activities due to drought, leaving them without money and killing numerous livestock and people out of hunger.
The exact reason as what lead to skyrocket the stock prices is unknown to present day. There are 2 mainstream theories behind the depression. Firstly, the demand driven theory as we discussed above. Due to decrease in the demand, people were unemployed and didn’t have money to buy goods, leading to huge inventory, firing of workers and shutting down of factories. Secondly, because of the policy makers especially the Federal Reserve. It decreased the money supply in the market, which created economic hurdles and leading the ordinary recession to the Great Depression.
The time ahead seems more challenging after reading the great depression. Fasten your seat belts, the ride ahead is gonna be very tough.
Igniting Curiosity.. 
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