Key Question 5: The End of Prosperity Flashcards
What were the long term causes of the end of prosperity?
Overproduction, damaged commerce, Falling demand, Small Banks, Falling property prices
Where was there overproduction in the US?
Industry and Agriculture, improved techniques for farming and production, too many goods
How had comerce been impacted in the 1920’s?
America sold surplus goods to Europe. However, European tariffs were placed in response to the Fordney McCumber Tariff; making this impractical.
Name an example of falling Property Prices.
1926 price fall, many braught these homes to sell and lost money because of this.
How did the less wealthy by goods?
On Credit, thus many owed large amounts of money to shops and companies.
How did small banks impact the end of prosperity?
Small banks were in abundance and lack the financial resource to cope with a mass withdrawal of money. Thus, after the wall street crash, many closed leaving people with no money at all.
What were the short term causes of the end of prosperity?
Loss of share confidence, over speculation and the stock market.
How does the Stock Market influence the end of prosperity?
Increased shares to unrealistic levels with over 20 million people invested in shares by 1929.
How does the over speculation influence the end of prosperity?
Some people would by on the margin- buying shares with credit. Earning debt in the short term to make profit once the shares are sold.
Name an example of a loss of share confidence?
The Wall Street Crash
When did financial experts warn of the slowing of the American economy?
September 1929 with many investors selling a large number of shares.
When was Black Thursday and how many shares were sold?
October 24, 1929, 12.8 million shares sold
When did the stock market collapse and how many shares were sold?
October 29, 1929, 16 million shares sold
How were workers affected by the Wall Street Crash?
Mass redundancy and rampant unemployment leading to the great depression in the 1930’s.
