) Explain the effects of the Wall Street Crash on the USA in the years 1929–32. (8)
1c) Explain the effects of the Wall Street Crash on the USA in the years 1929–32. (8)
The effects of the Wall Street Crash were felt all around America as people starved, businesses became bankrupt and unemployment rose. This era was known as the Great Depression and would last for another ten to twenty years.
The Wall Street crash had a major impact on the USA. It ended the boom years. In October 1929 there was a rush to sell shares as people lost their confidence in the stock market. On Monday 28th October about 9 million shares were traded and even more on the next day. A banking crisis then swept across America, as the confidence of the American public fell. In 1929, 659 banks failed due to unpaid loans. As a result people stopped trusting banks and withdrew their savings. This in turn led to more banks failing. Share prices dropped dramatically and continued to fall for the next two weeks. The major impact was that prosperity and consumerism of the 1930a came to an end. The use was going into depression and the confidence of earlier years disappeared. President Hoover became unpopular as he didn’t really believe he should take action.
In the short term, rich investors lost great deals of money. Whilst, poorer investors, who had borrowed on the margin', could not repay their loans and thus became bankrupt.
After a while, these incidents began to affect the American public. Firstly, unemployment rose as industries sunk into decline. The 14 million unemployed was a stark contrast to the 1.5 million unemployed in the 1920's. To make things worse, wages across the country began fall rapidly as people became more and more prepared to work for less.
This led to many needy families being forced into homelessness, poverty and starvation. Every town had a so-called Hooverville, a shanty town of ramshackle huts where migrants lived, while they searched for work. In these Hoovervilles, conditions were unsanitary and disease spread easily. Many of these people
The effects of the Wall Street Crash were felt all around America as people starved, businesses became bankrupt and unemployment rose. This era was known as the Great Depression and would last for another ten to twenty years.
The Wall Street crash had a major impact on the USA. It ended the boom years. In October 1929 there was a rush to sell shares as people lost their confidence in the stock market. On Monday 28th October about 9 million shares were traded and even more on the next day. A banking crisis then swept across America, as the confidence of the American public fell. In 1929, 659 banks failed due to unpaid loans. As a result people stopped trusting banks and withdrew their savings. This in turn led to more banks failing. Share prices dropped dramatically and continued to fall for the next two weeks. The major impact was that prosperity and consumerism of the 1930a came to an end. The use was going into depression and the confidence of earlier years disappeared. President Hoover became unpopular as he didn’t really believe he should take action.
In the short term, rich investors lost great deals of money. Whilst, poorer investors, who had borrowed on the margin', could not repay their loans and thus became bankrupt.
After a while, these incidents began to affect the American public. Firstly, unemployment rose as industries sunk into decline. The 14 million unemployed was a stark contrast to the 1.5 million unemployed in the 1920's. To make things worse, wages across the country began fall rapidly as people became more and more prepared to work for less.
This led to many needy families being forced into homelessness, poverty and starvation. Every town had a so-called Hooverville, a shanty town of ramshackle huts where migrants lived, while they searched for work. In these Hoovervilles, conditions were unsanitary and disease spread easily. Many of these people