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.
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.