why was there a stock market crash in 1929

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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.
      • 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.
    • 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


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