What was the impact on Wall St, Crash?

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What was the impact on Wall St. Crash?

Causes

  • Unemployment
  • Depression in the cities
  • Depression in the countryside

Effects

  • 2.5 million people were unemployed
  • Collapse of US economy
  • Businesses closed
  • 29 October 1929 known as 'Black Thursday'
  • People built alternative homes called 'Hoovervilles'
  • People lost their jobs and homes
  • People caught rides on freight trains in search of work
  • Bankruptcy among farmers grew.
  • Poor farming methods
  • Drought in 1931
  • Drought compounded farmers' problems of reduction prices
  • Soil turned to dust as it was exhausted
  • Known as 'dust bowl'
  • People tried to seek work in the west coast

Overall summary

There was a fall in demand for American consumer goods both at home and abroad.Thousands of investors lost millions of dollars and were ruined. There was a rise in unemployment and in 1933, not only did people become unemployed but about one-third of the workforce was unemployed. Farmers employed people who came to the west coast for work but worked for very low wages.

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