The ‘20s: Culture, Consumption, and Crash 151Stock Market Crash of 1929. If one were to randomly ask people “what
caused the Great Depression?” there is no doubt that a vast majority of
respondents would answer “the stock market crash of 1929.” The “crash” of
1929 and the depression have been linked together for over 8 decades now,
and the meltdown of the market is still generally cited as the cause of the
long-term economic crisis that followed. It would be foolish to suggest that
the two events were not connected, but the crash of 1929 did not cause the
depression. It was an important factor, with the ones we have mentioned
already [surplus capital and foreign economic crises] and others we will dis-
cuss below, in creating and confirming the depression. Stock markets are a
core component in capitalism, but work with other aspects of the political
economy to create both national and global economies. In 1929, the market
crash was thus a huge factor, but not the effective reason, for the depression.
By the late 1920s, financial and industrial leaders were plagued with sur-
plus capital and insufficient outlets for investment. The ruling class, with so
much money from profits and so few places to use it, turned to financial
speculation—putting their millions in the stock market. Between 1926-1929,
corporate heads began to put more and more money into the stock market.
In 1926, the Dow Jones Industrial Average was approximately 100; by 1928,
it had doubled; and by September 1929 the market peaked at 381. As the Dow
Britain/FranceDebts ReparationsU.S. Loans Germany
(Dawes/Young)FIGuRE 3-8 “Debt-Loan-Reparations Triangle”