Question

QUESTIONS:

Do you think the recent and current events of the time period – the stock market crash, a major economic depression, and a global war raging abroad – elevated the gullibility and fears of American listeners? Why or why not? How does this event speak to the power and influence of mass media, from radio and TV, to the Internet of today?

Answer 1

The Stock Market Crash

During the short depression that lasted from 1920 to 1921, known as the Forgotten Depression, the U.S. stock market fell by nearly 50%, and corporate profits declined over 90%. However, the U.S. economy enjoyed robust growth during the rest of the decade. The Roaring Twenties, as the era came to be known, was a period when the American public discovered the stock market and dove in head first.

Speculative frenzies affected both the real estate markets and the New York Stock Exchange (NYSE). Loose money supply and high levels of margin trading by investors helped to fuel an unprecedented increase in asset prices. The lead-up to October 1929 saw equity prices rise to all-time high multiples of more than 30-times earnings, and the benchmark Dow Jones Industrial Average increased 500% in just five years. The combination of these factors would ultimately cause the stock market crash.

• The Great Depression was the greatest and longest economic recession in modern world history.
• The American public began a frenzy of investing in the speculative market in the 1920s.
• The 1929 market crash wiped out a great deal of nominal wealth for individuals and businesses alike.
• Other factors including inactivity followed by overaction by the Fed also contributed to the Great Depression.
• Both Presidents Hoover and Roosevelt tried to mitigate the impact of the depression through government policies.
• Neither the government policies or the beginning of WWII can be single-handedly credited with ending the depression.
• Trade routes crea

The value of stock market and the great depression is not very much affected to mass media because of the padamic event and if it reaches the media it will affect all the company and this may led to depression.