How far do you agree with the view that the Wall Street crash was responsible for the Great Depression of the early 1930s in America?
The Wall Street crash occurred in 1929 and is regarded as being the most devastating stock market crash to have ever occurred in the history of the United States. The crash was cause due to a wide range of factors, which became uncontrollable during the 1920s when America was experiencing a period of ‘boom’ and many were benefiting from the prosperity. The events of the Wall Street crash signaled the start of the great depression, which had a massive effect on the rapidly growing economy of the United States. The wall street crash triggered the beginning of years of high unemployment, poverty, low profits, deflation and decreasing farm incomes. There were other factors that can be accounted as responsible for the Great depression such as President Franklin Roosevelt’s New Deal and the aftermath of the First World War. These other factors also contributed to the Great Depression of the early 1930s.
From 1921 and 1929, America experienced a boom in their economy. Business was doing great, sales and profits increased and share prices rose. Middle class and working class American were investing money in the stock market; buying shares in companies hoping would make large profit in the future. However, all of this came to an abrupt end in October 1929 in the Wall Street crash. This caused the Great Depression in America in the early 1930s because companies saw a huge decrease in profit. The Wall Street crash happened because companies produced too many goods and they were not able to export most of it due to high tariffs placed by other countries which made them extremely expensive. When the demand for goods declined workers’ wages decreased and a lot of workers became unemployed. Twelve thousand people were becoming unemployed every day and by the end of 1930, twelve million people were out of job. Conditions in the countryside...
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