Causes of the Great Crash Timeline

  • Federal Reserve Bank created

  • America heading to recession - start of War made America the principle industrial nation and leading financial power

  • Period: to

    Boom years

    GNP climbed by 21%
    Stock market rose by 86%
    National debt rose from 1.2billion to 25 billion
  • End of WW1 - Peace impact

    -Returning soldiers wanted their jobs back
    -Factories making guns needed to return to making more peaceful products; less demand for these products
    - Huge orders from Britain and France stopped as their industries slowly returned to peacetime production
    - European agriculture slowly recovered - demand for American grain dropped sharply - farm incomes fell
    - Unemployment rose to 12%
    - GNP dropped by 10% in 1919
  • Prices falling

    Prices fall by nearly 40% between 1920 and 1921, partly through overproduction and a lack of overseas orders, and partly because the Federal Reserve Bank pushed interest rates up to 7%