Although the popular belief is that the main cause was the crashing stock market in 1929 caused the great depression, there were other major economic events that contributed just as much as the crash, such as american’s overextension of credit, an unequal distribution of wealth, over production of goods, and a severe drop in business revenue. The stock market crash of 1929 the great depression was the worst economic slump ever in us history, and one, which spread to virtually the entire industrialized world the depression began in late 1929 and lasted for about a decade. Ignoring the period where the stock market was depressed (1976–1980) and the period when the stock market was overvalued (1929), the share of wealth of the richest 1% remained extremely stable, at about a third of the total wealth. Before the stock market crash, many people became successful buying stocks on margin this meant that a buyer could afford stocks by paying 10 percent of the total value of the stock initially and paying the rest in installments to the stock broker.
Just as the stock market had reflected the economic boom of the 1920s, it reflected the collapse and depression which began in october, 1929 as panic selling began, stock values nosedived taking most speculative margin buyers with them. What caused the wall street crash, 1929 diagram the causes of the wall street crash 2 uneven distribution of wealth 1 over production 3 loss of export markets 5 over confidence 4 panic 6 wall street crash 5 task 2 the questions topic: the stock market crash - topic:. Was the great depression caused by ww1, or did it just contribute how did uneven income distribution help cause the great depression ask new question e james brennan, behavioral economist, expert witness, great depression : it was mainly because stock market crash. The unequal distribution of wealth greatly contributed to the events at this time, taxes were very low on income so the wealthy was able to keep more money this cause an element in society where the wealthy were the only ones who could buy products such as automobiles, radios, stoves, etc.
Causes of the great depression 1 unequal distribution of wealth high tariffs and war debts overproduction in industry and agriculture 1928 presidential election farm crisis federal reserve monetary policy stock market crash and financial panic. The depression prosperity of the 1920 s stock market crash 1929 october 24, 1929 - black thursday stock prices collapsed 13 million shares were sold panic set in. The uneven distribution of wealth during the great depression was one of the causes of the great depression, as it led to an unstable economy other causes of the great depression were the stock market speculation and the stock market crash the uneven distribution of wealth started when more and. In 1929 the stock market crashed, triggering the worst depression ever in us history, which lasted for about a decade during the 1920s, the unequal distribution of wealth and the stock market speculation combined to create an unstable economy by the end of the decade.
Stock market crash essay examples uneven distribution of wealth contributed to the stock market crash of 1929 874 words 2 pages america has to be economically stable in the future 363 words a look at the triggers of the 1929 stock market crash 'the great depression in the us 459 words. Although there are many reasons why ww2 started, the stock market crash is definitely one of them after the crash, germany was hugely affected this created a shift in power from the weimer. The stock market crashed because of the excessive speculation in the 1920’s, which made the stock market artificially high the causes of the great depression were poor distribution of the wealth, excessive speculation, and the stock market crashes. Following the stock market crash if 1929, the us economy fell into a recession that 50%) while the 1929 crash was a significant contributor, there are other important factors 1 unequal distribution of wealth and income despite rising wages overall, income distribution was extremely unequal gaps in unequal distribution of corporate.
The market crashes • the market crash in october of 1929 happened very quickly • in september, the dow jones industrial average, an average of stock prices of major industries, had reached an all time high of 381 • on october 23 and 24, the dow jones average quickly plummeted, which caused a panic • on black tuesday, october 29, 1929, most people sold their. Comparing the 1929 market crash and the current position in the stock market during the 1920's, the north american economy was roaring, but this decade would eventually be put to a stop in october of 1929, the stock market began its steepest decline to this date in history. The stock market crash of 1929 revealed weaknesses in the american the great crash ch 21-1 causes of great depression/stock market crash •uneven distribution of wealth: rich got richer and poor’s wealth didn’t catch up this causes inflation prices for items.
During the 1920s, the rich got richer, and the poor got poorer between 1920 and 1929, the income of the wealthiest 1 percent of the population rose by 75%, compared with a 9% increase for the rest of americans as a whole. Unequal distribution of wealth and income despite rising wages overall, income distribution was extremely unequal 1923 and 1929, banks closed at the rate of two a day until the stock market crash in 1929, prosperity covered up the flaws in the banking system 4 the stock market crash of 1929. The primary reason for the crash was unrestrained buying of stocks on margin, a process by which a buyer pays only a portion of the purchase price of the stock and the broker pays the difference. The stock market crash of 1929 touched off a chain of events that plunged the united states into its longest, deepest economic crisis of its history nine thousand banks failed during the months following the stock market crash of 1929.