The Wall Street Crash was majorly due to an array of structural fallings and the economic imbalances that occurred in 1929. For instance, there was a credit boom due to previous excessive borrowing in the country; in hand with this was the enhanced buying of shares on the margin that wiped many millionaires after the crash; there had been an increased irrational exuberance etc. All these factors contributed greatly to a situation where the nationts money supply greatly reduced, employees of various companies were fired in droves, most companies became bankrupt, and most banks failed. In a nutshell, the economy was at a complete slowdown and almost crashed fully which resulted in what was called the great depression.
The main responses by America were perpetuated by the then president, Herbert Hoover. He worked ceaselessly in a bid to fix the deteriorated economy. With his main efforts focused on volunteerism for raising the money required rather than federal spending and intervention. However, his efforts only worsened the situation. Things changed when Franklin Roosevelt took power in 1932. He promised the country a tnew dealt (1932- 1940): involved direct federal support, reinforced the governmentts control of businesses, and shunned volunteerism for deficit spending. The new deal was not fully effective in solving the economic depression and required a second new deal for the new deal to be effective. The governmentts roles were well defined during this period and the economy was successfully re-established thus bettering the economy of America.
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