What changes did wall street contribute to the changes of the 1920s?

The Wall Street Crash and its impact

The unstable economy during the 1920s and the Wall Street Crash in 1929 led to an unprecedented depression in the USA.

Big businesses and banking collapsed

The crash brought financial ruin for many businessmen and financiers.

America’s GNP dropped by almost 50 per cent. Car production fell by 80 per cent and building construction by 92 per cent.

Banks collapsed.

659 banks closed in 1929. This increased to 2,294 in 1931. They collapsed because people withdrew their savings for fear of losing money. Their closures, in turn, led to the remainder of savers losing their cash as well.

Those banks which remained refused loans to struggling firms, leading to bankruptcies.

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