Final answer:
After the stock market crash of 1929, Americans had to adjust by dealing with bank failures, losing life savings, facing unemployment, and coping with reduced income. Consumers shifted to a frugal lifestyle, emphasizing essentials over non-essential goods while attempting to manage or avoid debts exacerbated by the economic downturn.
Step-by-step explanation:
Adjustments Americans Made After the 1929 Stock Market Crash
The fall of the stock market in 1929 necessitated several adjustments for Americans. Financial institutions were deeply impacted, with over 90 percent of banks having investments in the stock market. As banks struggled and failed, individuals lost their life savings and consequently their ability to invest or spend on non-essential goods. The broad economic downturn led to a cycle where consumers had less income to spend, which resulted in a decline in business profits, exacerbating the situation and leading to layoffs and further unemployment.
Many Americans who had been living with easy access to credit found themselves in precarious financial positions. People who had taken out loans or used credit cards extensively faced difficulties in repaying their debts. The collapse in the value of real estate and stock investments had a cascading effect, as Americans faced foreclosure and bankruptcy.
With unemployment rates rising, those fortunate enough to retain their jobs often had to accept lower wages. The necessity to survive on significantly reduced means led to changes in consumer behavior, prioritizing essentials and forgoing luxury or non-essential purchases. The widespread economic hardship resulted in the need for a more frugal lifestyle and sparked a heightened sense of economic caution that impacted spending and saving habits for the subsequent decade.