Causes of the Wall Street Crash

Question 1

Uneven distribution of Wealth

Answer 1

Some regions were much more prosperous than others, whilst income was also distributed very unevenly throughout the country. The Northeast and Far West enjoyed the highest per capita incomes; in 1929 these were $921 and $881. In comparison the figure for the Southeast was $365.

Question 2

Stability of Employment

Answer 2

Unstable owing to fluctuating demand for goods. During the first 9 months of 1929, of 165 families surveyed, 72% of the workers had been unemployed at some stage, and 43% had been jobless for a month.

Question 3

The instability of ‘get-rich quick’ schemes

Answer 3

‘Get rich quick’ the aim of many Americans in the 1920s. They invested in hugely speculative ventures and inevitably many lost their money. Provided golden opportunities for confidence tricksters and crooks.

Question 4

Land Speculation - the Florida land boom

Answer 4

The motor car brought Florida accessible to the nation’s middle classes and massive interest grew in the state as a paradise for vacations and retirement. Between 1920 and 1925, the population of the state increased from 968,000 to 1.2 million.