What caused the Wall Street Crash, 1929

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What caused the Wall Street Crash, 1929?

• A diagrammatic explanation

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Early 1920s Boom Years
Difficulty selling goods
Share prices increase
Production stopped high unemployment
Depression
People borrowing money to buy shares
1928/9
Sell shares
Overproduction
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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.

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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
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Task 2 The Questions

• Think about the style of questions you might get
  asking you about the Wall Street Crash
• Describe (4)
• Explain (6)
• Explain and make a judgement (10)
• Think of as many questions as possible that you
  might be asked.

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Possible Questions

• 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?

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Possible Questions

• 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)

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Possible Questions

• 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)

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Over production was the only cause of the Wall
Street Crash. Do you agree? Explain your
answer. (10)
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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)