Wall
Street Crash
The Wall Street Crash in October 1929,
created the worst depression in American history.
In the 1920’s America had seemed like a
wealthy country. It wasn’t.
The wealth was built on stocks and shares, just like those sold on New York’s
Wall Street and on the London Stock Exchange today.
Prices of these stocks and shares had been
climbing higher and higher but people knew deep down that their shares weren’t
really worth as much as they were being bought and sold for.
Some people got a little bit nervous and
decided to sell all their shares whilst the price was still high.
This acted like a snowball being rolled of the top of a mountain.
Pretty soon prices dropped a little, then a little bit more and before they
knew it the snowball had gathered pace, everybody was selling and the fall in
prices became an avalanche.
People lost their money savings.
They could no longer afford to spend money so the shops went bust.
Factories had no reason to employ people who were making products that were not being sold.
Almost before America knew what was happening there were millions out of work and America entered a Depression
Some facts and figures of the 1929 Wall Street
Crash
|
12 million |
people out of work |
|
12,000 |
people being made unemployed every day |
|
20,000 |
companies had gone bankrupt |
|
1616 |
banks had gone bankrupt |
|
23,000 |
people committed suicide in one year - the highest ever |
