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

What were the causes and consequences of the Wall Street Crash?

Extracts from this document...


What were the causes and consequences of the Wall Street Crash? Question 1: Over Production A reason which contributed to the Wall Street Crash in 1929 was the over production of car and consumer goods. Throughout the1920's the amount of goods that the industry could produce continued to increase especially in car and consumer goods section. However there was not enough money to keep this going in to the 1930's. As a result too much was being produced and there was not enough money for people to continue buying these goods. When people realised that share prices had risen too high as companies profits were falling as a result of over production. They wanted to sell their shares. As prices fell, more people wanted to sell their shares as they were scared of losing all their money. This caused a selling panic and share prices dramatically decreased. Question 2: A long term cause which contributed to the Wall Street Crash was the economic boom. Major companies soared, therefore people snapped up shares. Shares were seen as extremely safe by most people due to the powerful economic boom. ...read more.


This was a long term cause which contributed to the Wall Street Crash. The over production of goods was a short term cause which contributed to the Wall Street Crash. By 1929 at least one-third of all income generated by the American economy went to only 5% of the American people. 200 companies controlled 49% of industry. In 1929 43% of families earned less than $1,500 a year and 78% had incomes of less than $3,000. Many Americans therefore could not afford to buy any consumer goods or transport vehicles. The US economy had been built on the principle of mass production but the market for consumer goods was limited. People not being able to afford to buy the goods caused the companies share price to decrease. This worried the share holders therefore they decided to sell the share as fast as possible, otherwise they would become worthless. Question 3: On Tuesday 29th October 1929, the American Stock Market, Wall Street, crashed. As a result, 659 banks crashed in America in 1929, 1352 in 1930 and 2294 in 1931. ...read more.


It was a crisis in Germany. People had lost faith in the Weimar republic and many people wanted to see a change. It was realised that in such a crisis, the Weimar government needed one strong man to deal with Germany's problems. The Great Depression reignited people's anger for the Treaty of Versailles. People now started listening to Hitler. The Nazi's offered strength and discipline, which is what people were looking for. Before the Great Depression, people were happy to go along with Stresemann's policy. Support for Hitler grew as unemployment grew. In 1928, the Nazis had 12 seats in the Reichstag. In 1930 this rose to 107 and in 1932 to almost 200. The Nazi party was now the biggest party. In the 1932 presidency election, Hitler got 13 million votes to Hindenburg's 19 million. Von Papen and Hindenburg realised that a strong man who was backed with popularity in the Reichstag was needed in such a crisis, which is why they eventually appointed Hitler chancellor. Without the Great Depression, it is unlikely that Hitler would have risen into power. This unexpected event which Hitler had no control over was one of the most important reasons why he became chancellor. ...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 Germany 1918-1939 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 Germany 1918-1939 essays

  1. Weimar, 1924 - 1929

    Under the control of the SA was placed the new Schutzstaffeln (SS). Its members wore black uniforms (the SA's was brown) and swore an oath of loyalty to Hitler personally. Their role was that of an internal police force under Hitler's control.

  2. The Wall Street Crash was the most important reason for the increase in support ...

    However, even though the Communist Party were very popular, people feared them. They feared that they would take over the country and this would not benefit people of upper or middle class. The Nazis cleverly took advantage of the Wall Street Crash by using it to advertise themselves as Germany's last hope.

  1. Wall Street Crash

    It would have grown anyway because of the gradual decrease in money and employment. This was one of the long term factors leading to Depression before Wall Street Crash. In addition to this, farming became a crisis in the 1920's.

  2. ' Ironically the wall street crash and the subsequent recession in Germany were the ...

    Membership increased from 100,000 to 800,000 in the same time span The Weimar republic were faced with a financial crisis, caused by the high levels of unemployment and the falling tax revenues, leaving the government with little income yet they had to spend more on welfare.

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