The Relationship of The Wall Street Crash and The Great...

The Relationship of The Wall Street Crash and The Great Depression In this essay I will be explaining the causes of the Great Depression The Wall Street Crash was the drop in share prices in 1929.The Great Depression was the period in the 1930’s when the USA and other countries like Germany suffered a great deal of poverty i.e. hunger, unemployment, homelessness. Throughout this essay it will be explained how the Wall Street crash was a cause of the Great Depression but it was not the only cause as there were many other factors that also led to the Great Depression. I think the next long term cause was of the Great Depression was the inequality between the rich and the poor. This was a†¦show more content†¦Because of this the rich were getting richer and the poor were getting poorer especially the farmers and the ethnic minorities. The farmers and the ethnic minorities were already in depression, as they could not afford to buy any of the consumer goods and if they could they could not afford to pay for electricity or the fuel to use them. Actions of the banks was also a cause of the Great Depression although it a was a short term cause as it this only became apparent after the Wall Street Crash that the banks had leant too much money to the speculators. In the sense that they should not have leant so much money to anybody and everybody they would also not have lent the savings of some people out to other people. They also encouraged people to borrow money, which made them go into debt, which led to the Great Depression, as the speculators who had borrowed money could not pay the banks back as they had no jobs and the share prices had gone right down. The government was also to blame for the actions of the banks as they had given the banks too much freedom and had allowed them to lend as much money as they wanted to people. The government could have had control over this by limiting the amount of money they could lend to the people. Actions of the speculators was another short term linked toShow MoreRelatedThe Great Depression Of The 1920s1346 Words   |  6 Pagesthe long run, simply could not be sustained. The Wall Street stock market crashed in October 1929 and this triggered the beginning of a Depression for many nations of the developed world. The crash sent the city of New York into economic chaos and although the Great Depression began as an American problem, it was soon felt throughout most of the developed nations during the 1930s by crippling their economies (Schedvin, 1970). The Great Depression was the harshest and longest lasting economic downRead MoreThe Great Depression By Franklin D. 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