After experiencing a deep recession at the end of World War I, the U.S. economy entered a period of extraordinary growth that was the hallmark of the Roaring Twenties. Between 1921 and 1929 the production of automobiles, radios, refrigerators, washing machines, vacuum cleaners, sewing machines, and other electrical appliances provided tens of thousands of jobs and sent the stock market soaring. Between 1923 and 1929 alone, the production of appliances tripled, while the numbers of electric refrigerators owned by consumers jumped from 27,000 to 755,000. Not only did these new inventions herald the beginning of the modern age, but they fueled an economy that allowed millions of Americans to live more prosperous lives than at any previous time in history.

Flush with cash, an unprecedented number of people turned to the stock market to make their fortunes. Speculation was fueled by newspaper and magazine articles, some that claimed it...