20 Myths from American History We’re Here to Debunk

20 Myths from American History We’re Here to Debunk

Larry Holzwarth - May 28, 2019

20 Myths from American History We’re Here to Debunk
The stock market crash led to the Great Depression, but not to a rash of suicides as was commonly reported. Wikimedia

18 Mass defenestration following the stock market crash

In October 1929 the decade known as the Roaring Twenties came to an abrupt end, or at least that is how the history books tell it, with the stock market crashing, ushering in the Great Depression. In truth, the American economy had been exhibiting signs of problems throughout that spring and summer, and the collapse was foretold by the collapse of British markets a month earlier. The collapse of the New York Stock Exchange began on Thursday, October 24, was widely covered in the newspapers that weekend and nose-dived on Monday and Tuesday of the following week. Almost immediately sensationalist news reports told of mass panic in New York, with financiers, brokers, and bankers, leaping to their deaths from office windows as their fortunes were wiped out.

The tales of a dramatic increase of suicides during the collapse of the markets in 1929 were untrue, for the most part, and are part of the myth of the Great Depression today. Many brokers actually made money as the rich and large banks increased stock holdings to both boost public confidence in the markets and expand their shares. In fact, the reported suicide rate in New York decreased during the crash and for weeks following the financial disaster. Despite the florid accounts of people leaping from windows to the streets below, there were but two suicides by defenestration in New York between October 24 and the end of the year 1929, and one of those was challenged as being more likely a homicide.

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