• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

What factors were responsible for the Wall Street crash?

Extracts from this document...

Introduction

What factors were responsible for the Wall Street crash? In my view there are six main factors which led to the Wall Street crash. In no particular order and A) poor distribution of income between rich and poor, B) over production by American industry, C) actions of a speculators, D) no export market for US goods, E) decision by banks not to support share prices and F) Laissez Faire (not interfering with Industry and personal wealth). The clash came after a long period of high share prices and high sales of consumer goods in the early 1920s. Some causes above had been considered to have caused the crash more than others in the past but what is certain is that the crash would not have happened if all causes were not there. The first cause is that I will go into detail about is a poor distribution of income between rich and poor. I'm starting with this because it is the first on the list. In America the government dint tax people call into personal wealth (Laissez Faire), that meant that the rich got richer and the poor got poorer ...read more.

Middle

The reason is because there would have been more people to buy the produces leaving fewer surplus goods. Also the foreign market had collapsed after the First World War, leaving America without foreign trade and to back the situation worst America imposed tariffs on foreign imports making home-made produces cheaper to buy but Europe retaliated by imposing tariffs on American Exports making European goods cheaper to buy. Once the market for goods dried up in the USA, the company's started to stockpile which as a result made the prices of the goods drop but still the poorer American citizens could afford to buy consumer goods. The actions of speculators were another cause of the Wall Street crash. Once a speculators got told of the news that America industries were overproducing and demand for the products had decreased, the speculators are first plan of action was to sell shares are that they had in the companies that were over producing. This led to the stock prices of the before mentioned companies to fall. ...read more.

Conclusion

As so many people have access to borrowing money stock prices rocketed and as the saying goes all good things must come to an end and that stocks crashed. It did government took some interest in industries like he had of an economic crash would have been very low. The government policy to put import tariffs on European geared increased the market for American goods which led to the stock prices to fall, which in turn led to speculators to sell their stock increasing the price of the stocks further and subsequently the banks could and stabilise the prices and the whole system crash. All the causes were linked in one way or the other. My conclusion is that all causes have the same significance because all of them in their way were major contributors to the crash and the actual facts. The crash was once the most points in America's history and I ran positive that the government could take measures to stop it. The crash wouldn't have happened if all causes were not there. ?? ?? ?? ?? Daniel Edwards ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE USA 1919-1941 section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE USA 1919-1941 essays

  1. The crash (causes and consequences of the Wall Street Crash)

    The underlying weakness of the banking system There were 12 regulatory reserve banks headed by the Federal Reserve Board. The system allowed banks to regulate themselves and represented the banks and not the nation. State banks did not join this system.

  2. The Wall Street crash, the great depression and its how it affected the lives ...

    When this time had passed it meant that the Europeans were no longer dependant upon American goods as their agriculture rapidly recovered with the aid of German reparations. The other factor in the demise of European exports was the tariffs applied to American goods being brought to be sold in the European market.

  1. Did the Wall Street Crash cause the depression?

    The Wall Street Crash led to both banks and customers becoming bankrupt. This was because people who had borrowed money could not pay it back as they had lost it as share prices dropped, and the banks who had used customer savings had lost all the customers money in shares

  2. After the Wall Street Crash in 1933 the American economy collapsed and fell into ...

    passed so many laws in order to protect their rights and to help them when they were out of work. After looking at all the different laws passed by Roosevelt and their general effect on the economy, I can say that Roosevelt�s New Deal were successful.

  1. In the 1920's America was the richest and most powerful country in the world ...

    The soil was eroding and converting the land into desert. The majority of people in the Tennessee Valley lived in poverty and had no electricity. The problem was too big for one state alone to deal with, and the states were not co-operating well with one another.

  2. Describe the effects of the Wall Street crash on the USA by 1932.

    The rich lost most because they had invested a lot. There was therefore a downturn in spending on goods. Companies failed and went bust because nobody was buying so trade fell because the poor couldn't afford it and Europe's tariffs were too high.

  1. The Wall street crash

    This was also similar to the decline in farming and coal, textile and other industries. There were other problems aswell such as, unequal distribution of wealth and the state some banks where in. Before the crash, during the 1920, over 500 banks failed each year.

  2. In What Ways Did The Wall Street Crash Affec t Life In The U.S.A ...

    They had little hope, as the government was Republican therefore it didn't believe in benefits, so the families had to live on hand outs from charities such as "Holy Name mission". The unemployed joined the infamous "bread lines"; they would queue for hours upon hours among 10,000 men to receive

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work