People and Groups:
Andrew W. Mellon- Secretary of Treasury. Millionaire who disliked the taxes imposed after the war.
Irving Fisher- Yale economist who reassured americans that the dip in the stock market was nothing to worry about.
Herbert Hoover- President at the time of the big wall street crash that led to the Great Depression.
Andrew W. Mellon- Secretary of Treasury. Millionaire who disliked the taxes imposed after the war.
Irving Fisher- Yale economist who reassured americans that the dip in the stock market was nothing to worry about.
Herbert Hoover- President at the time of the big wall street crash that led to the Great Depression.
What happened:
Sayings like “Be a bull on America” encouraged Americans to take their chances and gamble with their investments in the stock market. More and more people were investing in stocks and receiving great rewards for it, inspiring many low class citizens to crave this quick and easy profit. It was relatively easy for one to invest in the stock market because they were able to buy on a margin, so the buying cost was minimal while the prices of the stocks continued increasing, making the winnings unbelievably large. Washington did not do much to control the money hungry gamblers until in 1920 a Republic of Congress created the Bureau of the Budget whose director would help the president in creating the annual budget with Congress in order to prevent the carless and extravagant allowances of money. Secretary of Treasury Andrew W. Mellon argued that the taxes imposed after the war were distasteful, discouraged business, and allowed the treasury a smaller net return. From 1921 to 1926 he created a series of tax reductions in an effort to help out the previously poor people who has won significant amounts of money in a shore period of time.
Sayings like “Be a bull on America” encouraged Americans to take their chances and gamble with their investments in the stock market. More and more people were investing in stocks and receiving great rewards for it, inspiring many low class citizens to crave this quick and easy profit. It was relatively easy for one to invest in the stock market because they were able to buy on a margin, so the buying cost was minimal while the prices of the stocks continued increasing, making the winnings unbelievably large. Washington did not do much to control the money hungry gamblers until in 1920 a Republic of Congress created the Bureau of the Budget whose director would help the president in creating the annual budget with Congress in order to prevent the carless and extravagant allowances of money. Secretary of Treasury Andrew W. Mellon argued that the taxes imposed after the war were distasteful, discouraged business, and allowed the treasury a smaller net return. From 1921 to 1926 he created a series of tax reductions in an effort to help out the previously poor people who has won significant amounts of money in a shore period of time.
Effect:
This habit of taking a gamble with investments in the stock market made it possible for people low on the social ladder to win millions of dollars. People who were valets, barbers, stenographers, and elevator operators worshiped the ticker-tape machine in hopes that one day they too could go from rags to riches. Secretary of Treasury Andrew W. Mellon argued that the taxes imposed after the war were distasteful, discouraged business, and allowed the treasury a smaller net return. From 1921 to 1926 he created a series of tax reductions in an effort to help out the previously poor people who has won significant amounts of money in a shore period of time, convincing congress to repeal the excess-profits tax and the gift tax, and lower excise taxes, income taxes, and estate taxes, saving the rich substantial amounts of money. This caused the heavy taxes to be lifted from the wealthy and placed on the backs of the middle class.
Once the stock market dipped in October of 1929, people were sent into a frenzy, selling stocks in order to cut their losses and save as much money as possible. Many big buisness owners and leaders, like Irvin Fisher, attempted to reassure worried Americans that their money was safe and bought big portions of stocks but eventually the Exchange could not handle all the transactions in such a short time, ultimately costing the US 30 billion dollars, and sending the nation into the Great Depression.
This habit of taking a gamble with investments in the stock market made it possible for people low on the social ladder to win millions of dollars. People who were valets, barbers, stenographers, and elevator operators worshiped the ticker-tape machine in hopes that one day they too could go from rags to riches. Secretary of Treasury Andrew W. Mellon argued that the taxes imposed after the war were distasteful, discouraged business, and allowed the treasury a smaller net return. From 1921 to 1926 he created a series of tax reductions in an effort to help out the previously poor people who has won significant amounts of money in a shore period of time, convincing congress to repeal the excess-profits tax and the gift tax, and lower excise taxes, income taxes, and estate taxes, saving the rich substantial amounts of money. This caused the heavy taxes to be lifted from the wealthy and placed on the backs of the middle class.
Once the stock market dipped in October of 1929, people were sent into a frenzy, selling stocks in order to cut their losses and save as much money as possible. Many big buisness owners and leaders, like Irvin Fisher, attempted to reassure worried Americans that their money was safe and bought big portions of stocks but eventually the Exchange could not handle all the transactions in such a short time, ultimately costing the US 30 billion dollars, and sending the nation into the Great Depression.
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