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WHY DID THE STOCK MARKET CRASH IN 1929?
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- Words:
- 1652
- Submitted:
- Thu Jul 11 2002
... THE WALL STREET CRASH AND THE GREAT DEPRESSION WHY DID THE STOCK MARKET CRASH IN 1929? There are numerous reasons for the crash of the American Stock Exchange and share prices in October 1929. The mal-distribution of the profits from the incredibly successful factories and businesses was one of the main causes. The companies were making ludicrous profits, whilst the workers (and shareholders) were not receiving their fair share. In 1929 19% of the spending money in circulation in the USA was owned by just 1% of the population. The company owners were making such a lot of money and not re-distributing it. The economy in general was suffering from the company owner's avariciousness. The average wage for industrial workers rose by about 8% between 1923 and 1929 but during the same period profits increased by 72%. An 8% increase in wages did not give the general public enough buying
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