Stock Market Made Easy

Stock Market Made Easy

Stock Market Made Easy

The decade of the 1920s was generally prosperous. By 1929, the Dow Jones Industrial Average (DJIA) was five times higher than it was in 1923. However after peaking in September 1929 at 381.17, the DJIA fell sharply for a month, leading to the fateful final week of October.

Many historians and economists have blamed the overindulgence of free market capitalism for causing the stock market crash. However a closer examination reveals that there were warning signs throughout the decade, and that government, not business, bore primary responsibility.

A Farming Downturn

During the 1920s, profitable farming declined for two main reasons: