10 Reasons Why the Roaring Twenties Sucked

10 – Economic Disaster

On October 24, 1929, the Dow Jones Industrial Average began to plummet in an event known as Black Thursday. The stock market continued to collapse, and by October 29, the Dow Jones lost 30% of its value, $30 billion or almost $400 billion in today’s money. It was a sum of money greater than what was lost during World War I and utterly eroded confidence in the stock market. On Black Tuesday, investors panicked en masse and sold over 16 million shares. The ensuing economic crisis became known as the Great Depression.

For every boom, there is a bust, or so it seems, and the stock market fared spectacularly well during the Roaring Twenties. From 1922 until 1929, the market had increased by almost 20% a year on average, and this growth encouraged investors to risk their life savings in what amounted to one of the biggest failed gambles in history. The practice of buying on margin became very popular as it enabled investors to borrow money from their broker to purchase stocks and they only had to pay a 10-20% down payment.

Companies began investing in stocks and banks were using customer money without permission. There were warnings signs in the weeks before the crash that were ignored by all but the savviest investors. The Dow Jones had reached a record high on September 3, 1929, but had fallen by 20% by October 22. It was on this day that the New York Times published articles about short selling, foreign investors leaving the market and margin sellers. The Times and the Washington Post fanned the flames on Wednesday and panic began to set in on Black Thursday.

The Wall Street Crash destroyed countless lives as many people lost their life savings. The Dow Jones continued to plummet. Its record high was 381.2, but by July 8, 1930, just 10 months later, it closed at 41.22, a fall of 90%. The Dow Jones did not exceed its 1929 record high for 25 years, and during the Great Depression, unemployment fell 25%, wages fell over 40%, and global trade fell 65%. The Roaring Twenties was replaced by the Terrible Thirties.

Where’d we get this stuff from? Here are our sources:

History.com – The Roaring Twenties

History.com – Women’s Christian Temperance Union

Ohio State University – Temperance and Prohibition

Drug Library – Did Alcohol Use Decrease During Alcohol Prohibition?

History Collection – Epic Parties you Wish You Went To: The Roaring 20s in Photos

History Collection – Doctors Wrote Prescriptions For Liquor During Prohibition

History.com – 10 Things You Should Know About Prohibition

Legends of America – Giovanni “Johnny” Torrio – Presiding Over the Chicago Outfit

Chicago Tribune – 10 Things You Might Now Know About The Outfit

National Crimes Syndicate – The Castellammarese War

Buffalo News – On This Date In 1901: Mckinley Assassin Leon Czolgosz Was Executed At Auburn Prison