The Wall Street Crash of 1929 Essay Example

of major cities in the US experienced a rise in shanty towns where residents constructed homes from orange crates and boxes. Dubbed as 'Hoovervilles', these towns were named after President Herbert Hoover who drew public ire for his perceived lack of action on unemployment. In 1931, he eventually offered assistance in the form of loans.

The option of repayment became unfeasible for those who suffered the most from the crash. In August 1932, ex-soldiers appealed for their war service bonuses in Washington but were turned away by the US Army, causing public outrage. Consequently, Hoover lost his re-election bid at the end of 1932 and was defeated by Franklin Roosevelt. Additionally, Britain was severely impacted by the Wall Street Crash.

Major industrial cities such as Manchester, Liverpool, and Birmingham were severely impacted as the shipbuilding, coal, steel, and textile markets suffered a downturn. Unemployment rates soared as orders for new ships came to a halt due to the absence of world trade. The decline in shipbuilding had a ripple effect on the coal and steel industries, which heavily relied on it for their orders. Additionally, Asian producer countries like India, China, and Japan began producing cotton and wool more affordably, causing the textile industry to suffer. To make matters worse, these countries started mass-producing synthetic fiber textiles as well.

Britain had previously been exporting naturally occurring cotton and wool products, but they were cheaper, easier to wash, and more durable alternatives. As a result of the collapse of the British Raw Material Industries, cities and areas where these industries were located suffered greatly. The coal decline had a particularly devastating impact on South Wales and Newcastle,

while Jarrow is the most famous example of unemployment reaching over 80%. This led to the infamous "Jarrow to London Hunger March". All of these terrible consequences were caused by investors who failed to fully understand the terms of their investments.

As the 2008 worldwide 'Credit Crunch' takes hold, it is important for both International Governments and Individuals to take steps to prevent a recurrence of such a crisis. While generating additional income to cover an impending recession is a good idea, it is important to be mindful of media hype that may contribute to economic downturns. The best option is to prevent recession from occurring in the first place.