Chapter 14 Flashcards
Why were basic key industries losing business
Railroads-because of new transportation
Mining and lumber- because of new forms of energy
Why were businesses failing after new housing declined
Plumbing furniture all were affected when housing sales went down
Why was the farming industry growing weak
Demand for crops drops after the war, take loans to set more land and then can’t pay off
Why were more Americans living on credit
Very easily available, didn’t have to pay for it
How was the uneven distribution of income affecting production of goods
Too many people could not afford the goods and the wealthy could not support the whole economy buy itself. High supply, low demand
Why were many Americans investing heavily in the stock market
All time high, lots of investing with little understanding of how it works, get rich quick
Stock market crash affect on cities
Lost jobs, evicted from homes, slept in parks/sewers, shanty towns, soup kitchens, bread lines,
Stock market crash affect on rural areas
Some farmers could grow foot for family, others lost land, turned to tenant farming
Stock market crash affect on men
Couldn’t cope with unemployment
Lost jobs
Some abandoned families
Hitch hiked, slept under bridges
Stock market crash affect on women
Worked hard for families
Less pay than men
Felt had no right when men unemployed starved to death too ashamed to reveal hardship
Stock market crash affect on children
Poor diets
Serious health problems
School years shortened and cutt
Some left for jobs or for adventure
Hoovers philosophy
Gov role was to encourage and facilitate cooperation not control it
Opposed any federal welfare or direct relief
First steps after crash
Called together banks and businesses
Boulder dam
Dam that’ provided electricity, flood control, water supply,
FDR reaction to election 1930
Much criticism to president but he held firm to his principles
