Effects of the wall street crash

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  • Created by: aggy98
  • Created on: 15-04-14 02:44
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  • Effects of the wall street crash
    • Farmers had to sell or abandon their land- leaving masses of food to rot when millions were starving.  They fell into disrepair and people complained that possible food was being left to waste.
    • There was massive unemployment- it reached 12 million unemployed by 1932.
      • Over 1,000,00 businesses went bust, meaning the production of manufactured good was 1/5th less than it was before the crash.
    • Many previously rich business men who had lost everything commited suicide as they couldnt face their families not being able to provide for them/
    • People now had no confidence in Hoover, so any attempts he made to solve the depression didnt have much hope of suceeding.
      • This led to the lection of Roosevelt, as people not had no confidence and Roosevelt gave them hope that things can change with government help.
    • Banks went completely bust, meaning there was very little money circulating so no-one could buy anything, no-one could afford to pay wages. 5,000 banks went bust.
    • Wages fell for those still with  jobs, $28 to $22. Many unemployed sold apples, or shined shoes or even sold newspapers.
    • 1929-1933- farm income dropped 60%.
  • The wall street crash- how it happened
    • March 1929- Hoover promised the boom would continue- ' a chicken in every pot" and boasted that ' We in America today are closer to the final triumph overpoverty than ever before. The poor man is vanishing from among us.
      • June 1929- overproduction meant industries cut back on production and people began to lose jobs.
        • September 1929- investors begin to worry and warned about a future crash. Some people sold, but stock market recovered as banks bought up vast numbers of shares to restore confidence and stability.
          • 24h october 1929- panic sets in and 13 million shares sold. The banks could not intervene on such a large scale as to prevent the complete crash.
            • Black thursday was followed by black monday and black tuesday, as the crash got worse and people didnt what to buy the shares some were unfortunate enough to still own.

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