Wall Street Crash

From the beginning of formation of nation peace and welfare of every nation depend on its economic security. But the same security is not guaranteed. Economic Crash could create mass poverty - as happened in the U.S.A after the stock market crash of 24 october 1929. Share prices tell so low that companies become worthless. Inventors lost their money and went bankrupt. With the country engulfed by depression, millions lost their jobs, then their homes. They went on the road in search of work, dependent on charity for survival. Countless members died from starvation and illness.

Mounds of worthless cash

Inflation - when money losses its value - can be a financial disaster. After world war 1, 'hyperinflation' in germany reduced the value of its currency, the mark, to virtually nothing. Germany had to pay huge sums in compensation to countries it had attacked in the war, but the government cheated by printing new bank notes to pay with. People lost the faith in the worth of this money and the marks value plummeted. In 1918, a loaf of bread cost 1 mark. In early 1923, the price has risen to 250 marks. By christmas, it was 200 billion marks. Workers took there wages in wheelbarrows, and children played with stacks of worthless cash. This economic anarchy lasted until the government introduced the new currency.

Standing in the line

As the great depression gripped the United States, jobless numbers increased reached 14 million and average incomes halved. Americans, receiving no unemployment benefit, relied on soup kitchens - or begging - to stay alive. Recovery only began after a new president, Franklin D.Roosevelt, introduced the 'New Deal' in 1933. This helped the poor find food, shelter and work through community projects, building roads, dams and houses.

Hard time for farmers

In 1932, with the depression at its height, America suffered another economic disaster. After the years of good harvests from the great wheat-growing plains of the south, the vast region was struck by the serious drought. The land soon become a 'dust bowl'. Farmers lost their properties and moved into crude shacks. Half a million people abandoned their land before the drought ended - five long year laters.

Panic in the Street

On the morning of the great crash, the stock exchange in New York wall Street was a scene of chaos. Large investors were selling shares in response to fears about the worldwide economy. As news of the falling prices spread, thousands of small investors ordered their stock brokers to sell 'at any price'. Panic broke out to the brokers failed to buy any buyers. Millions of shares worth worth billion of dollars became entirely worthless in a matter of hours.