The Wall Street Crash 1929

Causes and effects of the Wall Street Crash and how it affected America

The Wall Street Crash 1929

Causes

  • There were many weaknesses in the US economy already- some industries had not benefitted from the boom in the 20s
  • Americans borrowed money on credit to buy their shares
  • September 1929- prices of shares began to fall and began to realise that the shares they owned were worth less than the loans they had used to buy them in the first place
  • October 29th 1929- 'Black Tuesday' the day of the crash

Effects

  • Prices fell in these industries' goods and the people who worked in these industries usually got sacked
  • People actually didn't have the money so they were buying things and getting themselves into debt
  • The events of September led into the events of October 29th 1929- the day of the crash
  • Many individuals became bankrupt
  • Homeowners lost their homes
  • Banks crashed
  • Unemployment rose- in 1929, there were 1.6 million unemployed. In 1931, there were 8 million and by 1933, there were 14 million (throughout the Great Depression)

Overall summary

Many historians believed that speculation was the main reason as people were buying shares and taking out loans and they were slowly getting into debt

Comments

Miss E

Report

Good example of a cause and effect table used well to focus on a key event but relate it to other important trends. Remember when thinking about causes the long term cause is usually (but not always) the most important, in this case speculation was a cause mainly because the government hadn't regualted the stock market so people were able to borrow too much money.

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The Wall Street Crash 1929

Causes and effects of the Wall Street Crash and how it affected America

The Wall Street Crash 1929

Causes

  • There were many weaknesses in the US economy already- some industries had not benefitted from the boom in the 20s
  • Americans borrowed money on credit to buy their shares
  • September 1929- prices of shares began to fall and began to realise that the shares they owned were worth less than the loans they had used to buy them in the first place
  • October 29th 1929- 'Black Tuesday' the day of the crash

Effects

  • Prices fell in these industries' goods and the people who worked in these industries usually got sacked
  • People actually didn't have the money so they were buying things and getting themselves into debt
  • The events of September led into the events of October 29th 1929- the day of the crash
  • Many individuals became bankrupt
  • Homeowners lost their homes
  • Banks crashed
  • Unemployment rose- in 1929, there were 1.6 million unemployed. In 1931, there were 8 million and by 1933, there were 14 million (throughout the Great Depression)

Overall summary

Many historians believed that speculation was the main reason as people were buying shares and taking out loans and they were slowly getting into debt

Comments

Miss E

Report

Good example of a cause and effect table used well to focus on a key event but relate it to other important trends. Remember when thinking about causes the long term cause is usually (but not always) the most important, in this case speculation was a cause mainly because the government hadn't regualted the stock market so people were able to borrow too much money.