The Causes And Consequences Of The Great Crash Of 1929

The roaring twenties and threatening thirties
What were the causes and consequences of the great crash of 1929 and how did this link to New Zealand?
By Daniel Guest

Introduction
In the first half of the 1920s, the economy in the United States was in a good position. Companies were exporting to Europe, Unemployment was low, and vehicles were becoming more popular as they were seen on the roads more often across the country. However, an event occurred In the United States in late 1920s that was unexpected to the public. The greatest and most well-known stock market crash had hit the United States and not only just affected their country but the rest of the world. People’s lives had taken a turn for the worst as the stock market crash
In just three days, over 5 billion worth of market capitalization had been lost. Banks were in trouble they had invested their deposits into the stock market causing banks to lose their depositors savings as stocks went down. Americans citizens had found out that they could not withdraw their funds because banks could not collect the money that they had lent to people who had invested in the stock market. This then left the American people in shock and caused havoc on the streets because people could not collect their funds. 1616 Banks then were forced to shut down because they had gone bankrupt. This then had resulted in many jobs being lost, business going bankrupt, people’s lives changing for the worse and even 23,000 suicides the most America has ever seen in a year. “Clerks in downtown hotels were said to be asking guests whether they wished the room for sleeping or jumping. Two men jumped hand-in-hand from a high window in the Ritz. They had a joint account.” – John Kenneth Gabraith. This is a primary source of someone who was around at the time. This quote from Gabraith shows how serious the event was with people jumping out of
Although setting up soup kitchens is a nice gesture it was not enough because of how serious the effects were on New Zealand. New Zealander’s were getting so frustrated with the effects that the stock market crash had on the country that in 1933 a riot involving unemployed people had broken out on Queens street in Auckland. The 15,000-people involved in the riot had joined post and telegraph association members on their march towards a town hall meeting. They were then turned away at the townhall meeting by policing baring the entrance, the riot then broke out because of police baring the entrance. But then their leader had taken charge and had attempted to calm the riot, but a policeman had struck him resulting in a massive outbreak. This then involved many injuries and craziness on the streets of