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The most important consequence of the Wall Street crash was the closures of the US banks(TM) Do you agree with this statement?

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Introduction

'The most important consequence of the Wall Street crash was the closures of the US banks' Do you agree with this statement? The Wall Street crash had devastating effects on American economies and society. The Wall Street crash caused businesses into liquidation and rates of unemployment to soar. It also forced the banks to close as the banks lost peoples savings on the stock market. In this essay I'm going to look into whether 'the most important consequence of the Wall Street crash was the closure of the US banks' or if other consequences had more effect on American society. As prices began to rise in the early 1920s, the bank leant out vast amounts of money and many people bought shares 'on the margin'. ...read more.

Middle

Many people lost their life savings with the banks and without money, the banks were forced to close. As banks closed down businesses were unable to borrow and fell into liquidation, without money from the banks economy was unable to recover as industry failed as money disappeared. This was an important consequence to American society as without banks money disappeared making it difficult or industries especially those that hadn't shared in the prosperity, to recover meaning in turn economy was unable to recover. Closure of the banks also caused more problems for businesses and the economy. However many of the social consequences could be considered just as important. ...read more.

Conclusion

As when the banks closed businesses were unable to borrow money and as money disappeared people had less to spend, resulting in rates of unemployment to rise, as the banks lost peoples savings people were forced to move into shanty towns. The Closure of the banks was an important consequence but it resulted in more consequences and corresponds with the more social consequences of the Wall Street crash, rates of unemployment and high export taxes carry just as much importance as it was these reasons coupled with the lack of money and the closures of the banks which eventually lead to the great depression. ...read more.

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