Significance — Wall Street Crash

Question: Explain the significance of the Wall Street Crash of October 1929 for the United States. (8 marks)

Mark scheme (AO1/AO2):

• Level 1 (1–2): Identifies consequences without development.
• Level 2 (3–5): Describes consequences with some explanation.
• Level 3 (6–8): Analyses short- and long-term significance with precise detail.
• Indicative content:
  • Immediate: 'Black Thursday' 24 Oct and 'Black Tuesday' 29 Oct 1929 wiped c.$30 billion off share values; investors who had 'bought on the margin' were ruined.
  • Banking crisis: c.5,000 banks failed by 1933; depositors lost savings as there was no FDIC.
  • Unemployment: rose to 13 million (25%) by 1933; 'Hoovervilles' shantytowns appeared.
  • Political: discredited Hoover's 'rugged individualism', enabled FDR's landslide victory in 1932 and the New Deal.
  • Global: Smoot–Hawley Tariff 1930 deepened the worldwide Depression.