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What factors were responsible for the Wall Street crash?

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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.

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