Why Did the Wall Street Crash Happen in 1929?

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WHY DID THE WALL STREET CRASH HAPPEN IN 1929? The Wall Street crash which happened on 29 October 1929 was one of the most depressing events in the history of America. This happened because people lost their wages b 60%, 14 million people were unemployed by 1933, banks went bust and also US trade slipped from $10 billion to $3 billion. The Wall Street crash happened due to some reasons: one reason was, the Americans were buying consumer goods on credit, especially cars and houses they did this because, they didn’t have enough money, and therefore if they get the money they will be able to pay. Another reason was that speculation was rife, because people believed the stock market was easy so 20 million Americans invested but only 1.5 million people had serious knowledge of the market. Some of the Americans were just in for the short-terms, buying ‘on the margin’ with 10% deposit. Ford gave his son a million dollars in gold bars for his 21st birthday present; this led to the disparities of wealth because they had money and were spending it unnecessarily, while others didn’t have it. This was bad because, Ford didn’t give money to the banks for them to be able to invest with it to improve the economy but he bought things he didn’t need and this was rather decreasing the wealth of the economy instead of increasing the wealth of the economy. US industries were producing more goods then it could sell, this is bad because if the people are not buying goods it becomes useless and people needed to but them so that the economy grows but instead people didn’t buy because they had them already, therefore it was wasteful as no one wanted to buy, so it decreased the wealth of the economy. The most important reasons why the Wall Street crash happened were; the speculation ‘on the margin’, this was important because buying shares with a banks money and not being able to repay
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