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Wall Street Crash

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DID THE WALL STREET CRASH CAUSE THE GREAT DEPRESSION? The Wall Street Crash was a defining moment in the American economic history. It occurred on October 29, 1929. Before this, the economy was booming. During the 1920's, share prices were rapidly increasing and businesses were doing very well. 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. However, in 1929, the stock markets began to fall dramatically and caused devastating effects on the American economy. This was the beginning of long-lasting consequences for the whole country. The Great Depression was a long gradual period in which America suffered great economic depression, during which financial activity slowed down and unemployment was high. ...read more.


Overproduction of goods was a major problem. Mass production meant that goods could be made more quickly in larger amounts. As people had already bought the goods, there was no need to buy more so there was a less demand and more supply. This led to overproduction. Factories were forced to produce fewer goods, so less workers were needed. This meant that there was more unemployment. This unemployment increased, meaning there was less money to spend to again reduce further demand. This cycle continued and got worse each time. This was the starting to build up depression as it was affecting a lot of companies and it kept going round in cycles. It began to cause the cycle of Depression even before Wall Street Crash. ...read more.


This was turning into surplus goods. Many farmers were also suffering because there was a decrease in the population. The surplus goods meant that prices had to be reduced which lowered the profits. Due to this, some farmers were unable to pay rent and lost there homes and property. Over half of the US depended on farmers, so as farming worsened; it would have already caused its own depression. All this occurred long before the Crash. After World War 1, other countries started to become independent in the field of farming and did not depend on America. Instead, they made their own wheat and goods. Canadian wheat was the cheapest; so many Americans would buy their wheat from there. This also did not help the farmers and was one of the important factors of the long term causes of the Great Depression. ...read more.

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