Why did wall street crash in 1929?In 1929, there was a complete lack of confidence in the U.S. economy, leading to many, many investors

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Why did wall street crash in 1929?

In 1929, there was a complete lack of confidence in the U.S. economy, leading to many, many investors selling their shares. This is known as the wall street crash. This was caused by a number of short and long causes, of which I will elaborate on later.

Firstly, we must consider the old policy of tariffs in Europe. This is very important because of the fact that Europeans could not afford u.s. goods, as the tariffs for the buying of u.s. goods was too much for Europeans to pay. Another reason the Europeans could not afford to buy u.s. goods is because most European countries had hefty war loans they had to pay back to America, which they were struggling to pay back as it was.
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There was widespread poverty in the u.s.a. in the 1920's. almost 50% of American households had an average income of under $2000 p.a. this purchased only the bare essentials in life. The worst hit were the black people and new immigrants, who were highly discriminated against. Many black people lived in poverty in rural cities in america. New immigrants to america were given the lowest paid jobs, as Americans were highly prejudice against Europeans, plus they would work for anything just to live in america. With the collapse of trade unionism, there was little leeway for workers to ...

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