Great Depression Flashcards
When was the market crash and what was another name for it?
October 29,1929 also known as black tuesday
What were the problems in the stock market that led to the crash
- Stocks overpriced
- massive fraud and illegal activity
- investors used margin buying
- bunch sold their stocks
- stocks plunged
What happened to the farmers during the depression
- European nations were buying less farm goods
- prohibition reduced demands
- surplus and over production
- incomes dropped
What happened to the industry during the great depression
- credits allowed Americans to buy expensive goods, but people reached credit limit
- purchases dropped
- warehouse filled with goods
- autos and major appliances dropped
- new construction dropped
- surplus couldn’t be sold overseas
- workers were fired
What happened to the workers during the great depression
- wages for workers weren’t rising now
- few workers could afford to buy factory output
- unemployment reached 25%
What happened to the banks during the great depression
- 80% of americans had no savings at all
- crash triggered banking crisis
- stock investors could repay the margins
- many banks went out of business so many life savings were lost
What happened to the world during the great depression
- Europe owed over $10 billion to the U.S, but they had a bad economy so the demanded Germany pay
- led to financial crisis when Europe couldn’t purchase goods from the U.S
- 1922, U.S passed high tariffs and industries
What were Hoovers beliefs about government involvement in the economy?
- didn’t want the gov to take big actions and become powerful
- didn’t believe in direct relief programs
- urged leaders to keep there workers employed
- thought economy would bounce because of strong basis
What actions did Hoover take?
- state and local gov
- established aid
- developed public works
- set up RFC
What did the RFC do
Helped people loan money to $ to - banks - insurance companies - mortgages - large businesses - railroads Also lowered taxes
Highest unemployment rate
25%
Bank holiday
All banks closed for 4 days to be inspected to see if they can be fixed
Francis Townsend
More help needed for the economy
Father Charles Coughlin
(Radio priest) not strong enough actions were being taken against investors and bankers who created the problems
Huey long
“Share Our wealth” program which taxed wealthy and gave to the poor (2500 a year)
