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
What was the Smoot-Hawley Tariff and why did it fail in 1930
.In 1930, this increased price of imported goods to make people buy goods from the US.
. This harmed recovery of the Americans during the crash. Other countries responded by raising the price of imported goods from the US
What was the National Credit Corporation and why did it fail in 1931
Opened in 1931 where all major banks were meant to pay a loan fund to stop struggling banks closing.
This failed as banks did not want to help their rivals and believed the government should create a fund instead
What was the Reconstruction Finance Corporation and why did it fail in 1932
In 1932, this gave out loans to stop businesses and banks from failing
Did not succeed as it did not give individuals direct relief they needed
What was the Federal Home Loan Bank Act and why did it fail in 1932
In 1932, this encouraged banks to offer more mortgages and make home ownership cheaper
People were still losing their homes and homeless people built hoovervilles
What happened in 1932 during the election of a new president
Roosevelt was selected as president
What did Roosevelt promise
Roosevelt made a new deal to Americans which consisted of
1. Improve peoples live by giving direct relief
2. Rebuild US trade and industry to help economy recover
3. To create social and economic reforms
What was the three R’s
Relief
Recovery
Reform
What extra election promises did Roosevelt promise
Promised to act immediately after election to fight depression
Promised direct relief to small banks and homeowners
Promised to end prohibition and it failed and was unpopular
