Why the Wall Street Crash of 1929?

Answer 1

This was due to 9 factors which where used in the economic boom before:

Banks- banks collapsed as they lent money to customers who eventually could not pay it back

Businesses- Simply, they were making more goods than they could sell
Mass production- they over-produced goods and could not sell the rest

Republican policies- the laissez faire was seen as great but business owners did not control their money well, the tariffs made them unable to sell their products abroad and low tax.


Farmers- prices of their goods fell lower and lower so they couldn't pay their mortgages and debts, which ended up them having to sell their farm.


Dust Bowl- also farmers, the land lost fertility and it was unable to grow their goods.


Wall street crash- Loans were unable to be paid back


Unemployment- factories ( as a result of policies and over-production) had to cut the wages and workforce


Smoot Hawley tariff- first a success, but eventually exports and imports decreased by around 60% each and hoover did not sign it until 1930