- Created by: Gem_22
- Created on: 30-05-15 09:39
What was it?
The Wall Street Crash was were the share prices began to fall on the Wall Street Stock Exchange and everyone rushed to sell their stocks, but no one was buying them because their prices went down. This meant that no money could move around, causing the economy to crash
How it Happened?
The economy crashed because 13 million people sold their shares, but no one bought them back as they panicked because so many people sold them at once. As no one bought the shares back, the banks couldn't afford anything, so the economy crashed. As it is the banking capital, no one could get money.
How it affected America
It affected America because no one could get money and the country no longer had any money, so had to recall all their money to keep the country running. It also meant no one had money on the Friday morning.
How it affected Germany
It affected Germany because all the loans that Germany had gotten off America were recalled. This meant the Dawes Plan and Young Plan were recalled. America also stopped trading and, as they were the trading centre of the world, Germany couldn't trade. This meant that Germany were put back into their previous position, of economic crisis.
This made the people in Germany unhappy as businesses closed, land was sold, savings were lost, loans were recalled, benefits were cut and agriculture suffered.
This led to people being sacked, unemployment rising, young people could not find work, poverty, lack of money, crime increase and soup kitchens.
This made the people of Germany want to vote for someone else and Hitler promised a solution to their problems.