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

Why and with what consenquences did the US stock market crash in 1929?

Extracts from this document...


Why and with what consenquences did the US stock market crash in 1929? The Wall Street crash happened on 24th October 1929. It was a sudden dramatic fall in the value of shares on Wall Street which was the US stock market. There were many causes for the Wall Street crash. The first reason why the US stock market crashed in 1929 was the long term cause of over production. This was where companies produced too much of their product. The 1920's was based on making as much of a certain product as possible but by 1929 there no longer any need for this because the industries were running out of customers as people couldn't go on spending forever. There would only be a certain amount of a certain product that you need. These are things such as fridges and cars. This meant that there was a surplus of manufactured goods. This was a cause of the Wall Street because it meant that companies had to get rid of their products and to do this they had to sell at discount prices. Therefore profits were much lower. The consequences were that share prices went down. The second long term cause why the US stock market crashed in 1929 was the fact that there was an uneven distribution of wealth in the US. ...read more.


This meant that people stopped spending money and the demand for goods fell so industry declined. The first consequence of the Wall Street crash was banking. In the few years after the Wall Street crash around 5000 banks collapsed. This was disastrous as this meant that the savings of millions of Americans were just wiped out and that thousands of companies were destroyed because they couldn't finance their debts. With all of the banks in ruins, no loans could be made so new companies couldn't be started. Finally manufactured goods fell by 80% because no one was buying anything. This meant that with no new investment and with the falling demand, hundreds of thousands of workers lost their jobs. This led to huge unemployment. The second consequence of the Wall Street crash was unemployment. Because of the huge drop in the profits of companies after the Wall Street crash, employers could not longer afford to keep many of their workers. This meant that there was huge unemployment all over the country and by 1933 the unemployment level had hit 14 million. Also in America there was no state welfare so people lost all of their money and got no help from the government which meant that there was a huge amount of poverty all over the country. ...read more.


His next move was to build the Colorado Dam. This was a dam on the Colorado River which was there to try and irrigate the dried up fields to provide water and food to the people in that area who were starving. He also spent $4,000,000,000 to try and relieve poverty but it was too late. Also in 1932 Hoover set up the Reconstruction Finance Corporation. This meant that the government could loan money to the state governments to help rebuild communities but all of these things were too little too late. Hoover was very unpopular. Another consequence of the Wall Street crash was the rejection of the bonus marchers. This was when 20,000 ex-soldiers from the First World War went to Washington to ask for immediate payment of their bonus. The bonus was a payment of $500 that had been promised by an act of 1924 which was due 1945. They camped outside the White House and Hoover refused to meet them and in August he ordered the army to come in and clear the bonus marchers out and this made the current Hoover even more unpopular. I conclude that on the 24th October 1929, Wall Street crashed and because the United States were not ready for this and because they thought that the boom would last forever, the consequences were devastating. ?? ?? ?? ?? William Stephenson History Course Work - The Wall Street Crash 1 ...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)

    Why did so many people buy them (actually the numbers were not as high as many assume, only 1 million people were really serious investors)? Mainly because it was seen as the American Dream to go from rags to riches, and for a brief period it seemed buying shares was the way to do it.

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

    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. The tariffs arose in retaliation to the Americans applying the same tariffs to European goods entering the American market.

  1. Did the Wall Street Crash cause the depression?

    Now nobody had money, so they sold their belongings. However, since everyone was poor and could not afford items they were being sold very cheaply. This led to people becoming homeless and finally the depression. The action of the banks did play a major role in the Wall Street Crash but not so large in the depression as it

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

    The republicans and the rich opposed the New Deal for many reasons. They opposed the increase in the power of the federal government over the states because they thought that the individual state leaders were being forced into implementing Roosevelt�s schemes.

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

    Electricity was also manufactured by running the same water through turbines, and above all the operation provided thousands of jobs, in an area that had been hit badly by the depression. Roosevelt set up Trade Unions as part of the New Deal.

  2. The Wall street crash

    government wouldn't warn them because of this, many banks had closed because they couldn't receive help because of this policy.

  1. The nature and the causes of the Great Depression of 1929 in America.

    Until 1932 the American gross national product fell about 27 %. The industrial production fell the half. The inversions were not enough to keep the production installations in shape as they were rotting. Under this pressure the bank system also broke down.

  2. The United States 1919 - 1941, The Wall Street Crash

    the republicans believed that it would be best to interfere less in the everyday lives of the American citizens as in their view, the purpose of the president was to leave people alone so that they could become independent and to make them capable of finding jobs on their own without the support of the government.

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