Wall Street Crash

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  • Created by: Knowles99
  • Created on: 23-12-14 05:02

Wall Street Crash

Causes

  • Hoover became president and promised a continuation of America's prosperity.
  • Overproduction becomes a big risk as some industries cut back.
  • Investors worry about a crash and some people sell their shares but problem is avoided.
  • OCTOBER: People panic and 1 million shares are sold. Prices plummet and no one buys.

Effects

  • Unemployment- 12 million in 1932.
  • Homeless build shelters in parks- Hoovervilles
  • Over 100,000 companies bankrupt. Workers laid off.
  • Some people commit suicide
  • Banks shut down as they couldn't pay investors.
  • Big investors lost heavily: Vanderbilts lost $40 million.
  • Smaller investors evicted and homes were repossessed as they used them for security.
  • Hoover cuts taxes to help economy.

Overall summary

After Hoover became president he was certain that America's economy would continue to BOOM. However, people started to worry and overtime the number of people pulling out of the stock market increased causing the stock market to collapse. This lead to the Wall Street Crash and then the Depression.

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