In 1929, most Americans believed prosperity would continue. President Herbert Hoover pledged to end US poverty when he took office in March. It wasn't a crazy goal. New York Stock Exchange stocks reached a new high in September. Many Americans believed that the modern economy of the 1920s had eliminated sharp economic downturns.
Despite the general well-being, some observers doubted that economic laws had been overturned. They observed worrying economic trends that could lead to bigger issues. Examples:
The stock market crash didn't immediately cause a global recession. Many saw October 1929's stock market correction as inevitable. President Hoover reaffirmed his confidence in the US economy. He reminded people that the economy was more than just a volatile stock market. The production of goods and services, he believed, was the economy's core.
Unfortunately, the stock market crash was a direct and indirect cause of the Great Depression:
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Chapter 24: World War II (1933–1945)
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