The New Deal and the wall street crash

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Kellie Moore-Mulveen

New Deal

Wall Street crash severally affected the U.S economy, immediately after the crash there was down turns in spending, which in turn lead to the closing down of many factories and farms. Those who had borrowed money to by shares in the first place had no money to pay the bank back, which soon lead o the closing of  hundreds of banks all over America, in 1929 659 banks failed, in 1930  1352 banks failed and in December 1930 the United States bank in New York went bankrupt. This caused panic all over the U.S and everyone no longer trusted  banks, people started to withdraw all of their money and store them in safety deposit boxes or at home, this lead to a further 2294 banks to go bankrupt in 1931. People were no longer spending money. Between 1938 and 1933 production from industries and farms fell by 40% and wages dropped by 60%.

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American people began to lose faith in the ability of Hoovers government to solve the crisis because it took Hoover until 1932 to actually accept that there as a crisis in America, before that he kept telling the nation that every economy goes through a boom and a bust, and even after he accepted the matter he continued to believe that ‘prosperity it just around the corner’, farmers started to turn on Hoover, a young, President of the farmers union of Wisconsin said ‘the farmer is a naturally conservative individual but you could not find a conservative farmer today!’. ...

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