There are several factors that made the Wall Street crash inevitable. There was an overproduction in American industry, the wealth was not evenly distributed, there was a restricted market for US goods in other countries, speculators “played” the market with borrowed money and there was an enormous panic to sell shares in October 1929.
New methods of mass-production and mechanisation meant that production of consumer goods had expanded significantly. There was an over production-more was being made then could be consumed and the market couldn’t handle it. The people who could afford the goods had bought what they wanted but too many goods were reaching the market and there weren’t enough people who could afford to buy them.
The wealth of the 1920’s wasn’t evenly distributed among the American population. Almost half of the American families had an inco
American businesses were so successful that they made the market do extremely well. From the middle of the 1920’s, speculation began to increase. People weren’t investing in a company because they thought it was strong but they were just investing in it because they hoped that the price of the shares would rise. So many people invested in this way that the price of the shares rose out to an exaggerated value. People who couldn’t afford it started to buy stocks and shares with borrowed money. Their buying helped push up share prices but these small investors wouldn’t be able to pay back the loans to the banks when the prices fell.
US goods had a restricted market in other countries. Its was unable to sell its surplus products to other countries especially Europe despite it being a big market. The European countries couldn’t afford American goods because they owe
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