Effects of the Wall Street Crash 1939

Effects of the Wall Street Crash 1939

1. On Tuesday 29 October 1929, 16 million shares were sold and shareholders lost a total of $8 billion

2. 600,000 individuals ruined

   • 1932 alone, 250,000 lost their homes

3. Global exports fell from $125 billion in 1929, to $35 billion in 1933

   • US exports fell from $10 billion to $3 billion 1929-32
     • Many countries came off the gold standard which linked the exchange rate to the amount of gold in that country. The USA did not, meaning their exports were more expensive in other countries.

4. Industry collapsed

   • Over 100,000 businesses shut down
   • industrial production fell by 40%
   • 1/3 of farmers lost their land
   • Sales in American shops fell by 50%
   • Wages fell by 60%

5. Banks

   • 10,000 banks went bankrupt 1929-33
     • 1929 alone, 700 banks collapsed
   • Bank of America was worst hit
     • 1931, ruined 400,000 depositers

6. Unemployment

   • 1.6 million in 1929 (2.3%) to 12.1 million in 1932 (23.6%)
     • 1933, reached 25%
   • In Chicago, nearly half the black labor force was unemployed by 1933
     • Charleston = 70%
     • Memphis = 75%