Black Thursday was the 1st day of the most devastating stock market crash in the history of the United States. The Great Depression was a severe worldwide economic depression that started in 1929. The Great Depression was far more than just a stock market crash. During the 1920’s American firms earned record amount of profit but spent most of the profit on expansion. Also, corporate profits, skyrocketed, wages dramatically increased which widened the distribution of wealth and resulted in limited economic growth. There were also fundamental structural weaknesses in the American economic system. Banks in the 1920’s operated without guarantee to their customers which caused panic during rough times. With few regulations the bank loaned out money to those who were taking risks in stocks.
The Great Depression caused banks to fail, unemployment to rise up to 25%, and an increase of homeless people.