America- Depression Flashcards
Wall Street crash ?
On Black Tuesday, 29 October, 16 million shares were sold on the Stock Market in Wall Street and the US economy collapsed completely.
By what year was America in Great Depression ?
By 1930, America was in the Great Depression.
One cause was farming, why ?
As farming techniques improved, farmers started producing more food. However, the demand for grain fell in America because of Prohibition and changes in tastes in food.
One problem was lassiez faire?
The laissez-faire policy of the Presidents meant there were not enough safeguards in the economy, especially on the banks and the stock market.
Banks were not regulated?
There were very few large banks in America, but there was a huge number of small ones which were unstable and did not have the financial resources to cope with the rush for money when the Wall Street Crash happened.
Hire purchase was a cause why?
A lot of Americans bought goods on hire purchase. As a result, they owed money to shops and credit companies. Many of these businesses went into financial difficulties when people failed to pay their debts.
Unemployment increases ?
Unemployment increased: It rose from 1.6 million in 1929 to 14 million in 1933 (i.e. from 3 per cent to 25 per cent of the workforce). People were desperate for work. For example, in 1930 there were 6,000 men on the streets of New York trying to survive by selling apples.
Wages fell ?
As competition for jobs increased, even those in work suffered. Employers reduced wages and increased hours. Some government employees, for example teachers, were not paid when city councils, for example in Chicago, went bankrupt.
Starvation grew ?
Workers struggled to buy even the basics, such as food. In 1931 about 100 died directly of starvation in New York hospitals. Many more died of illnesses related to a lack of nutrition. One third of children in New York were malnourished.
Homelessness soared?
By 1932 over 250,000 people could not pay their mortgages. Those who fell behind with their mortgages or their rent were evicted. Most ended up either on the streets sleeping on park benches or living in Hoovervilles, i.e. shanty towns on the edges of cities made of cardboard boxes or corrugated iron shelters with no facilities.
New deal ?
In Hoover we trusted, now we are busted!’ Needless to say, Hoover lost the 1932 election due to widespread poverty and was replaced by the Democratic leader, Franklin D Roosevelt
What did Roosevelt have to face ?
Roosevelt faced the enormous task of restoring confidence in a shattered economy.
What crippled Roosevelt in 1921 ?
However, in 1921 an attack of polio had left Roosevelt permanently crippled, and his ongoing battle against this terrible illness enhanced his ability to relate to ordinary Americans.
TVA ?
The Tennessee Valley Authority (TVA) - responsible for flood control, building dams and constructing new towns.
The National Recovery Administration ?
this agency negotiated with the major industries to create fair prices, wages and working hours.
