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. America had a high rate of starvation, homelessness and poverty. People were living in poor conditions with very little money. During the whole period, there was unsteadiness and it was inevitable that a devastating event could take place. It had begun long before and was gradually increasing but took place shortly after the Wall Street Crash. It was a consequence for many long term factors too.

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Throughout this essay, I will demonstrate how the Great Depression occurred and the long term effects of the Depression. I will also explain how the Wall Street Crash was not the main cause of the Depression, but how it speeded the whole process of a gradual already existing event which was going to occur.

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 ...

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