Depression and The New Deal 1/4 Flashcards
During the Wall Street crash, what happened to the values of shares
The constant buying and selling of shares on stock market inflated its price making shares seem more valuable that they really was
During the Wall Street crash, what happened to the stock market
The stock market collapsed in 1929 as people realised there business was failing and sold their shares. The rapid selling of shares led to stock market collapsing
During the Wall Street crash what happened to the availability of credit
It became almost impossible to get credit. Americas economy relied on credit which led to an economic depression
How did the stock market crash have an affect on production
Industrial Production dropped by a third between 1929 and 1931 and wages fell and workers were sacked
How did stock market crash have an affect on banks
Banks had to close because Americans could not afford to pay back their bank loans and banks no longer gave credit
How did the stock market crash have an affect on businesses
Banks no longer gave credit to people which meant that people could not afford consumer goods which led to businesses failing and closing
Why were farmers unable to pay their mortgages during the depression
Farmers were struggling to pay off their bank debts. Farmers had to reduce their prices which meant that there income was not enough which meant that there debts and mortgages increased which led to them being evicted
What was the dust bowl
Dust bowl was used to describe huge areas of land in the Midwest where no crops were grown due to draughts
Why was Overproduction a big issue for businesses during the Great Depression
Overproduction was a big problems for businesses as the supply of goods was higher than the demand for them which meant that businesses was paying for supplies but not making any profit from it.
Why did some businessmen not suffer as much as other businesses during the Depression
Some businessmen were very wealthy so could cope with the loss of income
How did the Great depression affect Employment
Depression led to a big increase in unemployment rate as it increased by 19.5% between 1929 to 1933
How did the Great Depression affect Poverty
Depression led to a big increase in poverty as there was no national welfare system in America so people relied on charity for essentials and queued up for food in breadlines
How did Great Depressin affect Famillies
Disrupted family life as marriages were delayed and birth rate decreased. Many fathers had to abandon their family in search for jobs
Who was president Hoover
A republican who was in power during the wall street crash
Why was hoover deselected as president
Hoover did very little after the wall street crash to intervene to help his people. He also believed in rugged individualism so did not offer help to individuals which made him lose support in congress and unpopular
