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Did the wall street crash cause the great deppression?

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Did the wall street crash cause the Great Depression? In the commencing essay, I will be evaluating whether the Wall street crash caused the Great Depression or not. I will be discussing whether is has played a major part in the Great Depression, whether it was just a minor incident. The Wall Street Crash was a defining moment in the American economic history. It occurred on October 29, 1929. Before this, the American economy was booming. During the 1920's, share prices were rapidly increasing and businesses were doing very well. The image the world received from America was that that everyone was rich, which wasn't. The farmers were given very small amounts of money for their work. This meant that people had more money so more products were being sold. There was a lot of speculation that share prices would continue to rise. ...read more.


Most of these were small banks, in rural areas. They were liable to being withdrawn loans by their customers in large amounts. 10 years later, 5000 banks were gone, which was 1/6th of the country's banks. Another main reason was the extremely uneven distributions in income. In 1929, a staggering 1/3 of the country's wealth belonged to just 5% of the population. Meaning that just 2/3 belonged to 95%. This was a factor of overproduction as limited amount of people in the country could afford new products. Probably the main reason why the Wall Street Crash happened was that there was an international problem with the economy. The ability of the European country's being able to sell goods to America and helping them out with debts, was limited by a Tariff policy which was introduced. This policy (Smoot-Hawley Tariff) was increasing the tax on imports. ...read more.


There was very severe drought in the 1930 in the USA, which impacted America even more. If the farmers were unable to grow crops, how would they receive money, and feed their families? If the businesses do not receive the crops, how would they be able to keep receiving profits? As a result, these farmers had to sell their land. This was when famous author John Steinbeck wrote the book 'The Grapes of Wrath', which was based on this drought. Also, the Smoot-Hawley Tariff as mentioned above, was a vital part in this depression, as trades were limited. In conclusion about whether the Wall Street Crash caused the Great Depression, personally I believe that the Wall Street Crash was not the sole reason for the Great Depression, but was definitely the main reason. If there was no economic downfall, the Great Depression would not have happened. The Wall street crash opened doors for many different problems, such as bankruptcy. If the Wall street crash itself did not happen, these things would not have occurred. By Ismail Omer ...read more.

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