What caused the Wall Street Crash, 1929?

A diagrammatic explanation

Early 1920s

Boom Years

People borrowing

money to buy shares

Share prices increase

Overproduction

1928/9

Difficulty selling goods

Sell shares

Production stopped high

unemployment

Depression

Task 1 – The Diagram

• Using the 5 main reasons for the Wall Street Crash. Try to draw a diagram to explain how they linked together to cause the crash in 1929.

• The purpose of this is to produce a visual plan of the causes which should help you to form the links/connections between the causes.

Diagram – The Causes of the Wall Street Crash

1

Over production

3

Loss of export

markets

2

Uneven distribution of

wealth

4

PANIC

5

Over confidence

6

Wall Street Crash

Task 2 – The Questions• Think about the style of questions you

might get asking you about the Wall Street Crash:

a. Describe (4)

b. Explain (6)

c. Explain and make a judgement (10)

• Think of as many questions as possible that you might be asked.

Possible Questions

a) What was the Wall Street Crash? (4)What was happening to the American Stock Market before the Wall Street Crash? (4)What were the main causes of the Wall Street Crash?What were Speculators?What caused American's to be over confident?Describe what happened on Black Thursday?

Possible Questions

b) Explain why America could not sell their goods aboard. (6)Explain why the Wall Street Stock Market crashed? (6) Why were companies overproducing in America in 1929? (6)Why was uneven wealth a problem? (6)Why did people panic when share prices fell? (6)

Possible Questions

c. “Over production was the only reason for the Wall Street Crash.” Do you agree? (10)

“Over confidence was the most important cause of the Wall street crash.” Do you agree? (10)

“It was the fault of the banks that the Stock Market collapsed.” Do you agree?

“The Wall Street Crash was inevitable.” Do you agree with this statement? (10)

“Over production was the only cause of the Wall Street Crash.” Do you agree?

Explain your answer. (10)

Other questions Choose one and have a go at

answering it (you would have about 20-25 minutes to complete this question in the exam).

• “Over speculation was the most important reason for the Wall Street Crash.” Do you agree? Explain your answer. (10)

• The following are all equally important reasons why the Wall Street Crash happened: (i) over confidence, (ii) over production, (iii) uneven distribution of wealth. Do you agree? Explain your answer. (10)