America Boon Bust And Recovery -

Question 1

Timelines of the Wallstreet Crash and the Great Depression

Answer 1

1929 Oct - great crash in share values
1930 June - Hawley-Smoot Tariff damages internal trade
1930 Nov-Dec - major banking crisis, 8.7% unemployed
1931 Summer - international baking crisis devlops
1931 Sep - GB leaves gold standard
1931 Oct - 522 US banks collapse, 15.9% unemployed
1932 Jan - Reconstruction Finance Corporation established, big increase in taxes to cut large Federal deficit
1932 Nov - Roosevelt defeats Hoover in Presidential election, 23.6% unemployed
1933 March - Roosevelt takes over from Hoover, 24.9% unemployed

Question 2

Why was the Depression so serious for American society and the economy?

Answer 2

Only a small proportion of the US population was affected directly by the Wall Street Crash
Not everyone had invested, and most people hadn’t
However, between October and December 1929, the numbers of unemployed in the USA rose from 500,000 to 4 million
By the time FDR became President (1933) unemployment had risen to 15 million
- these figures don’t include those who had part-time or short term contracts (the-underemployed)
Wall Street Crash shattered public confidence and plunged US into deep economic depression
However, for most Americans, Great Depression meant rising unemployment and banks collapsing
Between 1929 and 1932, unemployment went from 1 1/2 mil to over 12 mil
In the same time, 20% of US banks collapsed, which wasn’t good for those who had savings invested in them
Read wages fell by 16%, construction fell by 78% and investment decreased by 98% (1929-31)

Question 3

Problems caused by rise in unemployment

Answer 3

In 1929, USA didn’t have an old age pensions or a system of unemployment welfare
Helping unemployed was the responsibility of state governments
Only a few of these had unemployment welfare systems
Other groups also suffered greatly, such as workers, farmers, ethnic minorities and veterans

Question 4

Impact of Great Depression on Different Groups