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What impact did the Wall Street Crash have on America?

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Introduction

What impact did the Wall Street Crash have on America? America had hit a boom in the 1920s, ever since the 1870s American Industry had been growing vigorously. By the time the First World War had started America led the world in most industrial areas. It had massive steel, coal and textile industries. New technology had been developed such as the motor car, the telephone and electric lighting. In fact, everything was going swimmingly for the majority of Americans, this was until the stock exchange collapsed in 1929 - from then on America hit a depression where the rich people lost vast amounts of money and the poor continued to get poorer. On 4th September 1929 the share index started to drop and it was down hill from there for the American stock market. By 28th October it was clear that the Banks had stopped. ...read more.

Middle

This only made matters worse and more and more banks collapsed. People were cautious now and saved there money at home. This just made matters worse as over production was made worse as people did not buy as many goods. The stock market did not recover after the slump as nobody had the confidence to keep there savings in shares. Because of the over production workers had to cut production and in labouring industries especially this caused the owners to cut the work force as they could not afford to pay for workers who they didn't need. This obviously increased unemployment and many agricultural workers were forced out of business and ended up living in slums in suburbs and made make-shift houses out of corrugated steel. The American depression had well and truly started. Many workers; most were black farm workers because these were the first who were out of jobs found themselves unemployed. ...read more.

Conclusion

In conclusion to this it is clear to see that the crash of the American stock market was a huge blow to nearly all Americans. President Hoover had hoped that the affect would just be short-term but he failed to realise just what the lack of confidence would do. The crash did not affect many people for quite a long time after the crash happened. However in that time in America the rich were very rich and the poor were very poor. Therefore many people were already living below the poverty line and so were not affected by it very much. Many people at the time did not realise the way that a lot of people (especially in the south) were living. Also the share prices were still higher than they had been a few years earlier but it was just the public who thought that it was worse than it was - therefore making the situation progressively worse rather than rectifying it. ...read more.

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