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The Wall Street Crash and the Great Depression

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Introduction

"Without the great crash of 1929 there would have been no depression" I believe that the above statement is only partially true. The depression was made worse by the Wall Street crash, much like cause and effect. During 1929 America began to see a tear in the American economy, which led to a big hole, which in turn lead to the crash. A further decline in the stock market and further reductions of product prices, contributed heavily to the Wall Street crash, and was due to mass over production and loss of faith in the stock market. The 1920's had been a great time for the American economy as it was experiencing the 'boom' times. Not everyone benefited from the 'boom' times, and this became clear during the crash, as many people were exposed to poverty, due to unemployment. The stock market was doing well and the economy was 'booming'. ...read more.

Middle

This caused the smaller investors to panic, and 'on the margin' buyers began to realize that there share would soon be worthless, as the prices were falling, and they would soon pay more than what their share was worth. They began to sell, which sparked a frantic rush to sell and get rid of shares. Prices continued to fall, as there was not a high demand for shares. Towards the end of October $8 million was lost, desperate shareholders sold their share for any price rather than being left with nothing. It took the stock market a total of 10 days to completely crash, and during that period of time 50,697,451 shares changed hands or were dumped. Also happening at this unfortunate time was the mass over production of goods, caused prices to fall rapidly, and due to the falling demand for goods, less and less profit was being made. ...read more.

Conclusion

In 1932 the suicide rate rose dramatically to 23,000 people, shanty towns were named 'Hooversville' after the president at that time, as the American people blamed him for their plight. In 1932 Roosevelt was elected as president and already had plans to pull America out of the depression and drive them through the other side. Roosevelt proposed the new deal, which was his plan to get America back on her feet again. He provided hope for people and restored public confidence in the government. In conclusion I think that having studied the great depression that America may still have sunk into depression without the crash, as although it went through the 'boom' times not every one benefited from it, there was still unemployment, which had been increasing from 1926, and a weak economy. The main cause of the depression was the weakness in the economy. Although the crash was not a direct factor of the depression, it made it a lot worse than it might have been without the crash. ?? ?? ?? ?? Georgina Peak ...read more.

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