Why did the Wall Street Crash and subsequent Depression occur?

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Why did the Wall Street Crash and subsequent Depression occur?

There has been much debate among economists and historians regarding the causes of the Crash and the ultimate depression, and a consensus surrounding the issue still remains elusive. In the following essay I intend to outline the main arguments surrounding these causes. These include the effects of the Stock Market crash, weaknesses in the banking system, overproduction, the subsequent effects of WWI, a mal-distribution of income and finally, the corrupt Government system which was in place.

Jones (1995, cited in Traynor, 2001) has described the 1920's in America as an era of "unparalleled prosperity"1. 1929 however experienced, arguably the worst depression ever in U.S history. Thousands of people lost large sums of money due to the Wall Street Crash and many were financially wiped out, losing everything. Millions of people were left homeless, jobless, and bankrupt. The Crash subsequently led to the Great Depression. This period served to show the harsh reality between that of the "booming 20's" in which a culture of wealth and luxury epitomized many livelihoods (such as "flappers," the Jazz age and also saw the introduction of many industries into the market) contrasted with