How did the ripple effect of the 1929 stock market crash eventually affect all segments of American society?
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The stock market crash had a ripple effect that eventually had some degree of impact on essentially every segment of the country. This was true because it helped to destroy the buying power of many consumers and the lending ability of many banks.
When the stock market crashed, many banks were wiped out. They had loaned out large amounts of money to people who had used the money to buy stock or to companies whose stock was booming. When the market crashed, the people playing the market could not pay the money back and neither could the companies. This led to banks having to close.
When the banks closed, many people lost their savings. Many people also had money in the stock market and lost that. This meant that many people were unable to buy as much as they once could. When they stopped being able to buy, it hurt the people who would have been making things for them to buy. It hurt industry and even farmers (who were already doing poorly in the ‘20s).
Thus, the ripple effects hit consumers, manufacturing firms, retail firms, and farmers. That is practically everyone in the country.
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