economic crisis - COMPLETE

Question 1

when was the economic crisis?

Answer 1

1929-1933

Question 2

what caused the crisis?

Answer 2

overproduction of goods
unsound banking system 
wall street crash 
uneven distribution of wealth 
international debt issues

Question 3

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Answer 3

overproduction of goods

Question 4

what happened to economic output in the 1920s, as a result of new mass production and mechanisation methods?

Answer 4

it increased by a staggering 50%

Question 5

in 1920 over 8 million Model Ts were produced. how many in 1929?

Answer 5

more than 23 million

Question 6

what types of goods were people buying in the 20s?

Answer 6

cars
radios 
watches 
cameras 
fridges 
washing machines

Question 7

how did the overproduction of goods contribute to the crash?

Answer 7

as confidence slipped consumers began to save money, so sales figures dropped dramatically

Question 8

why was the market flooded with items which could not be sold in 1929?

Answer 8

because those who could afford the goods had already bought them

Question 9

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Answer 9

unsound banking system

Question 10

what was a problem with the banking system?

Answer 10

it had very little regulation

Question 11

in 1921, how many independent banks were there in america?

Answer 11

over 30,000

Question 12

what was the problem with these banks?

Answer 12

they were not part of a national organisation and had limited assets

Question 13

what did laissez faire policies mean for these banks?

Answer 13

their reliability was never checked

Question 14

what problems did management in these banks have?

Answer 14

they were incompetent and dishonest

Question 15

what affect did easy loan terms have?

Answer 15

it encourages high levels of borrowing

Question 16

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Answer 16

WALL STREET CRASH

Question 17

when did the wall st crash take place?

Answer 17

october and november 1929

Question 18

what happened on october 24 1929?

Answer 18

over 13 million shares were SOLD on the stock market

Question 19

and on october 29, black tuesday?

Answer 19

over 16 million were sold

Question 20

what happened to share prices?

Answer 20

they collapsed and kept falling until mid november

Question 21

how much had the stock market lost in value by november 1929?

Answer 21

$30 billion, more than the USA spent throughout WW1

Question 22

what were the short term causes of the crash?

Answer 22

professionals sold their stocks by the end of 1929 (they knew prices were false) and buying on margin

Question 23

what is buying on margin?

Answer 23

people would borrow money to buy shares and sell it when it went up in price, then they would use this money to pay back their loan and keep the profits

Question 24

what were the social and economic effects of the crash?

Answer 24

economic depression 
extreme poverty 
homelessness 
collapse of farming
mass migration

Question 25

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Answer 25

UNEVEN DISTRIBUTION OF WEALTH

Question 26

what happened to the rich?

Answer 26

their average incomes rose slowly and they became richer

Question 27

and middle and low class americans?

Answer 27

not particularly good or bad; they were doing okay

Question 28

which areas fared best?

Answer 28

the north and midwest - the south were worse off

Question 29

who did not share in the prosperity?

Answer 29

black people and women

Question 30

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Answer 30

INTERNATIONAL DEBT ISSUES

Question 31

what could be argued as a cause of the crisis?

Answer 31

the desire to protect businesses of the GOP governments

Question 32

what was the fordney mccumber tariff and when was it passed?

Answer 32

passed in 1922, it placed a high tariff on all imports so that people would buy american goods

Question 33

who put taxes on import goods?

Answer 33

both america and europe

Question 34

what did foreign states do in response to american tariffs?

Answer 34

they raised tariffs against US goods which made it impossible for the USA to export

Question 35

what did this mean?

Answer 35

US goods could not be sold abroad and the US could not expand the foreign markets

Question 36

what did this lead to?

Answer 36

sticking of goods in america which in turn led to cut backs in production

Question 37

what did the tariffs impact?

Answer 37

employment, profits and the value of shares

Question 38

how did the bankruptcy of germany effect america?

Answer 38

they had lent germany money after the war

Question 39

what were employment rates in 1952?

Answer 39

25.2%

Question 40

what is unemployment now?

Answer 40

7%

Question 41

how were unemployed people supported?

Answer 41

they weren’t - there was no welfare system

Question 42

how many people in new york were unemployed?

Answer 42

1 million

Question 43

and how many in toledo, ohio?

Answer 43

50%

Question 44

what happened in cities?

Answer 44

people went hungry and faced starvation large food queues formed

Question 45

and in the countryside?

Answer 45

sheep were slaughtered left to rot prices made it uneconomical to transport to the cities