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HISTORY - america > economic crisis - COMPLETE > Flashcards

economic crisis - COMPLETE Flashcards

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1
Q

when was the economic crisis?

A

1929-1933

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2
Q

what caused the crisis?

A 
overproduction of goods
unsound banking system 
wall street crash 
uneven distribution of wealth 
international debt issues
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3
Q

🚨🚨🚨

A

overproduction of goods

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4
Q

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

A

it increased by a staggering 50%

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5
Q

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

A

more than 23 million

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6
Q

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

A 
cars
radios 
watches 
cameras 
fridges 
washing machines
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7
Q

how did the overproduction of goods contribute to the crash?

A

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

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8
Q

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

A

because those who could afford the goods had already bought them

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9
Q

🚨🚨🚨

A

unsound banking system

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10
Q

what was a problem with the banking system?

A

it had very little regulation

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11
Q

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

A

over 30,000

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12
Q

what was the problem with these banks?

A

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

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13
Q

what did laissez faire policies mean for these banks?

A

their reliability was never checked

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14
Q

what problems did management in these banks have?

A

they were incompetent and dishonest

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15
Q

what affect did easy loan terms have?

A

it encourages high levels of borrowing

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16
Q

🚨🚨🚨

A

WALL STREET CRASH

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17
Q

when did the wall st crash take place?

A

october and november 1929

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18
Q

what happened on october 24 1929?

A

over 13 million shares were SOLD on the stock market

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19
Q

and on october 29, black tuesday?

A

over 16 million were sold

20
Q

what happened to share prices?

A

they collapsed and kept falling until mid november

21
Q

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

A

$30 billion, more than the USA spent throughout WW1

22
Q

what were the short term causes of the crash?

A

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

23
Q

what is buying on margin?

A

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

24
Q

what were the social and economic effects of the crash?

A 
economic depression 
extreme poverty 
homelessness 
collapse of farming
mass migration
25
Q

🚨🚨🚨

A

UNEVEN DISTRIBUTION OF WEALTH

26
Q

what happened to the rich?

A

their average incomes rose slowly and they became richer

27
Q

and middle and low class americans?

A

not particularly good or bad; they were doing okay

28
Q

which areas fared best?

A

the north and midwest - the south were worse off

29
Q

who did not share in the prosperity?

A

black people and women

30
Q

🚨🚨🚨

A

INTERNATIONAL DEBT ISSUES

31
Q

what could be argued as a cause of the crisis?

A

the desire to protect businesses of the GOP governments

32
Q

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

A

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

33
Q

who put taxes on import goods?

A

both america and europe

34
Q

what did foreign states do in response to american tariffs?

A

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

35
Q

what did this mean?

A

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

36
Q

what did this lead to?

A

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

37
Q

what did the tariffs impact?

A

employment, profits and the value of shares

38
Q

how did the bankruptcy of germany effect america?

A

they had lent germany money after the war

39
Q

what were employment rates in 1952?

A

25.2%

40
Q

what is unemployment now?

A

7%

41
Q

how were unemployed people supported?

A

they weren’t - there was no welfare system

42
Q

how many people in new york were unemployed?

A

1 million

43
Q

and how many in toledo, ohio?

A

50%

44
Q

what happened in cities?

A

people went hungry and faced starvation

large food queues formed

45
Q

and in the countryside?

A

sheep were slaughtered left to rot

prices made it uneconomical to transport to the cities

HISTORY - america (6 decks)

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