The Wall Street Crash of 1929: Causes, Extent, and Impacts (Research Paper Sample)

The Wall Street Crash of 1929
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Abstract
The paper discusses the main causes of the 1929 Wall Street Crash. Previous studies have indicated that the major cause of the crash and subsequent economic depression was the structure of the financial markets, inadequate government regulation, and tight monetary policy. The paper also delves into the impact of the stock market collapse and the lessons learnt from the crash. The major lessons learnt include the need for diversification by investors and also for policymakers to implement financial market regulations.
List of Figures and Tables
Figure 1: Pattern of the Dow Jones Industrial Average, 1920-1940…………............……………3
Figure 2: Federal Reserve Bank Discount Rates, 1918-1938…………………….......…………...5
Figure 3: U.S. Unemployment Rate, 1930-1945…………………………………….……………5
Figure 4: U.S. Gross Domestic Product (GDP), 1929-1933………………………………………6
Table 1: Economic Indicators of the U.S., 1929-1932……………………………………………6
Introduction
The United States suffered a tremendous stock market crash in 1929 when the market bubble burst. The crash resulted in financial losses of $25 billion, bankruptcies and massive unemployment (Ingram, 2005). The paper lays an insight into the factors that caused the crash, and the impact it had on the American economy. The lessons policymakers and investors could learn from the crash are also highlighted in this paper.
The Period before the Crash