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History

Video

In October 1929, the Wall Street stock market crashed, sending America into the greatest economic depression in its history. Find out how this happened in this video.

The Wall Street Crash and Depression

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Key points

  • 1929 - the Wall Street stock market crashed. Shareholders and businesses lost millions of dollars, industrial production dropped by 45% and 5,000 banks went out of business.
  • By 1932 America was in the greatest economic depression in its history. 13 million people were unemployed.
  • The American economy was weak for 4 main reasons: over-production, unequal distribution of wealth, high import tariffs on American goods, and too much speculation on the stock market.
  • When the stock market collapsed, America recalled its loans to European countries. This had a devastating impact, causing a world financial crisis.

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