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wall street crash

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Wall street crash coursework Black Thursday 24/10/1929 Large sales of shares GE and Radio sales fell Banks spent $40million to stop decline Shares prices stopped falling Rumours that men had committed suicide Banks now demanded repayments of loans that Investors had to buy shares They now had to sell shares to pay the banks Everyone now selling shares with no one wanting them - Prices continued to drop 1: Why did shares prices on Wall Street crash in October 1929? In the 1920s an easy way of making money was to buy stocks and shares on the stock exchange because the price of shares were always increasing in value, so after holding onto them for a short while you could sell them at a good profit. The profits were so good people use to take out loans to buy the stocks and shares and would still make a profit even after paying back the loan. These easy profits and available credit helped fuel the economy and the boom of the 1920s. By September of 1929 $6 billion of debt had been amassed. ...read more.


Protest The bonus army Money Food Suicide Life in America was dramatically affected after the wall street crash. America had gone from a wealthy country with happy citizens to a place where only the rich could live. Because no one had the money to buy anything like cars or houses that meant factors had to close down with nothing to manufacture, ports went to ruin as there were no boats to build, and business failed due to lack of customers and orders putting more people out of work. Every day the number of unemployed went up by 12,000. Overall 12 million people were out of work by the winter of 1932, which is a quarter of the country's work force. There was no kind of Government Benefits or payment for people who were out of work so if you lost your job you had no money to buy food or pay bills. Over a million people became homeless because they could not pay their rent or mortgages and were thrown out many becoming "hobo" or "tramps" or having to live in makeshift houses made of cardboard boxes and scarp wood, these places became known as "Hoovervilles" named after President Hoover. ...read more.


(CCC) civilian conservation corps, (FERA) federal emergency relief administration Hoover did take some steps to improve the American economy. In 1930 he cut taxes by $130 million. In 1931 he put money into building river dams such as the Hoover dam. This created jobs in the construction industry and, in the long run, increased the electricity supply. In 1932 he signed the emergency relief and reconstruction act, giving �300 million to the states for helping the unemployed. But even these few measures had little effect. Many republicans in the states believed even more strongly than Hoover in 'rugged individualism'. They disliked the federal government in Washington poking its nose into their affairs, and they gave out only $30 million of the money offered to them. In November 1932, in the presidential election, the American voters voted Hoover out of office. In his place they elected a Democrat, Franklin D Roosevelt who bravely promised 'a new deal for the American people'. Thirteen years of republican rule in which America had risen to new heights of prosperity, and then crashed to the depths of depression, had come to an end. ...read more.

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