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The Wall Street Crash

In: Historical Events

Submitted By gracemj
Words 467
Pages 2
In this essay I will be discussing what affect ‘The Wall Street Crash’. There was many reasons for the crash and the crash had effect on all the people in America. I will be discussing the way the depression effected people.

One reason why there was a depression was because wealth was not shared out fairly in the USA. Sixty per cent of American families were living below the poverty line. As a result many Americans could not afford to buy the products like vacuum cleaners and cars. By 1928 American factories were over producing. They could not sell their goods abroad because tariffs were high on American products. Factories had a cut production off by laying off workers. As result unemployment grew.

Another reason for the depression was because farmers were experiencing serious problems. In the 1920’s farmers were producing too much food and it was going to waste. As a result food prices fell. Farmer’s incomes fell so they borrowed money from the banks. They also tried to produce more food which meant prices fell even lower. As a result farmers were unable to pay back the money they borrowed from the banks. The banks ended their mortgages and took their houses and their forms.

Thirdly speculation and the Wall Street Crash caused depression. Millions of people had borrowed money to buy shares hoping to have better lives and become wealthy. People who had brought shares lost a lot of money. They could not repay the money they had borrowed from the banks. Hundreds of banks became bankrupt and also lost a lot of money, as people could not pay the money borrowed from the banks. Banks called in their loans from businesses and thousands of companies closed down due to this reason. Factories closed down and thousand of goods were left unsold. Also thousands of workers were left unemployed. The unemployment rate increased during this time.

Finally, America was

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