Effects Flashcards
Effects on businesses ?
Many businesses went bankrupt because I couldn’t repay the loans
Banks are refusing to give credit and some factories couldn’t survive so they closed down
Demand for goods fell because people couldn’t afford them. Therefore factories cut down their production, made less money and needed fewer workers
Effects on US citizens?
People lost their savings if their bank went bankrupt – at the bank of New York over 400,000 people lost their savings
They lost their jobs if the bank business or factory closed down, so unemployment rose
They lost their homes and farms if they couldn’t pay the mortgage or rent as a result of lost savings or unemployment - over 13 million people unemployed by 1932
They lost their positions if they couldn’t keep up with higher patches payment or if banks used them to cover learned that they couldn’t pay
Effects on banks?
Banks who had been trading lost huge amounts of money
And people went to withdraw their savings, most banks couldn’t afford to pay out everyone savings at once. They went bankrupt and closed down. By 1933 5000 banks had closed down
The banks he survived needed money so they asked people, businesses and countries to repay the loan in full, at once. Many of them couldn’t do this
