why was there a stock market crash in 1929
- Created by: bartleyellie17
- Created on: 16-02-16 16:59
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- stock market crash 1929
- problems of 1920s
- over-production
- in industry
- By the end of the 1920s there were too many consumer goods unsold in the USA. The supply was bigger than the demand.
- in agriculture
- An abundance of crops led to falling prices and thousands of farmers became unemployed after having to sell their farms.
- in industry
- tariff policy
- America tried to sell its surplus goods to European countries. But, in response to the Fordney-McCumber Tariff Act, European countries had imposed a tax on American goods.
- unequal distribution
- A lot of the country's poorer people bought goods on credit and as a result, a great deal of them owed money to shops and large companies.
- over-production
- Wall street crash 1929
- long term consequences
- Unemploymet - 13 million people were out of work
- homelessness
- short term consequences
- On 29 October 1929, 16 million shares were sold at very low prices. The Stock Market New York in had collapsed
- economy fell
- From 1929 to 1932, 5,000 banks went out of business
- short term causes
- As it was easy to borrow money, some people would buy shares on the margin~
- over speculation
- long term consequences
- problems of 1920s
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