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Causes of the Wall street crash.

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Introduction

There were many reasons for the causes of the Wall Street Crash. Firstly in the 1920's share prices in the USA rose year after year. Americans thought of the stockmarket as a place for money. They thought that they could invest then get a larger sum back. Risks were not noticed of money being lost. Share prices were rising because companies encouraged people to buy products on credit. But this made people eventually not being able to keep up on credit. Some companies in the stockmarket were bogus, and people lost money, also companies did not tell the truth and buyers did not know what they were buying into. ...read more.

Middle

More shares were sold. On Tuesday 29 a huge 16million dollars of shares were sold. The crash finally did come. It resulted in 12 million UN-employed (20% of the workforce), 20,000 companies went bust, 1616 banks closed down, 23,000 people committed suicide and 1/20 farmers were evicted. These figures show us the huge affect it had on the USA. Effects on Britain In Britains major industry's like ship building, coal, steel and textiles there was massive unemployment. Shipbuilding was very badly hit as orders for new ships dried up. As world trade fell, no new ships were needed for importation and exportation of goods. As ships used coal for energy, the coal industry suffered as well. ...read more.

Conclusion

Copper brought in the most money, and nitrates were affected. * Belgium suffered from people taking coal from the streets. And 60% were unemployed. Germany was the most effected out of them all! The Treaty of Versailles had ordered Germany to pay reparations; they agreed and borrowed the money from the USA called the Dawes Plan. But this was eventually replaced when it was replaced with the young plan. By the end of 1932 UN-employment rose to 600, 000. This made the chances of the nazi party and Hitler higher to get into power. He posed as Germanys 'last hope'; people were so desperate that they listened more to Hitler. He posed that he would sort out Germany. The Wall Street crash gave Hitler a second chance, if it didn't crash then Hitler may not have come to the Chancellor of Germany. Words: 635 ...read more.

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