Why and with what consenquences did the US stock market crash in 1929?
… to sell at discount prices. Therefore profits were much lower. The consequences were that share prices went down. The second long term cause why the US stock market crashed in 1929 was the fact that there was an uneven distribution of wealth in the US. I believe that this was the least important cause. In the 1920’s around 60% of Americans lived on the minimum needed for the basic necessities of life and around 33% of income was earned by 5% of the population. The reason why this was a cause of the Wall Street crash was that the majority of Americans couldn’t afford to buy the consumer goods of the boom so much fewer people were buying the products so share prices went down. The third long term cause of why the US stock market crashed in 1929 was protectionism. This was the where, in the 1920’s, a tax was placed …
