Causes And Effects Of The Wall Street Crash
It’s effects were felt not only in America but across the world, directly affecting millions of lives, and indirectly working to reshape Europe and the world today as we know it.
This obviously had a huge immediate effect in America, with millions of ordinary people losing their savings and being made redundant meaning therefore that they were no longer able to contribute to the economy by purchasing consumer goods- so the economy came to a stand still.
Culturally, after coming from the period of progression and prosperity that was the roaring twenties, the zeitgeist of America shifted into a much more uncertain and pessimistic one.
The Wall Street Crash also saw a severe and immediate global effect.
Britain …show more content…
Homelessness became a huge problem, especially in America- with huge makeshift, shanty towns set up.
This had a huge physical toll on the population with more people becoming sick and huge numbers of people becoming sick and malnourished.
However, prior to the Wall Street Crash, America’s financial prosperity meant that they had invested in and given loans to many other countries across the world.
One country where we really see the devastating effects of this was Germany, who due to the work of chancellor Stresemann, had only recently begun to fix their huge economic crisis after WWI, with the help of American loans and investments.
Because of the nature of these loans being short term, when the American stock market collapsed, the Americans immediately withdrew these loans, plunging Germany back into a huge economic depression. This had a very similar effect on the German population as it did on the American and British population in terms of the huge effect of everyday