America - Key question 5 Flashcards
What were the long term causes of the end of prosperity?
People had confidence in the economy and they began to speculate. Only small numbers of people could actually afford the products they bought as they were buying with credit.
How did overproduction affect people?
Factories were producing too much, meaning it couldn’t be sold. Factories had to decrease the wages of employees as they couldn’t afford to pay as much. Farmers were also producing too much and the cost of their crops was decreasing.
What were the short term causes of the end of prosperity?
Businesses were having to lower prices, pay lower wages and sack workers in response to overproduction In September 1929 share prices were starting to fall and people were losing confidence in American businesses.
What happened leading up to the Wall Street crash?
Throughout the days people were selling shares and on Thursday 24 October 1929 13 million shares were sold. On Tuesday 29 October 16 million shares were sold.
What happened after the Wall Street crash?
Unemployment rose from 1.5 million to over 12 million and thousands of small businesses went bust. In 1929 659 banks closed and $200 million was lost. The value of goods in shops fell by 50% and so did the amount of money the USA made a year.
What was overspeculation?
Investing in companies shares withot researching them as they were so confident that they would make money.
What was consumerism?
The desire to buy goods like vacuum cleaners, refrigerators and cars.
What was the Stock Market?
Where shares of companies are boughtand sold, determining the value of the share.
