Long answe Questions to Wall street crash, great depression and 1932 Election Flashcards
Why did banks collapse after the Wall Street Crash?
Many American people had bought shares using loans from the bank (they borrowed 90% of the money) share prices dropped significantly during the Wall Street Crash people lost money and were unable to pay back their loans to banks banks collapsed.
Why did the Wall Street Crash cause unemployment?
People lost confidence in the economy they spent less money on consumer goods businesses lost profits businesses were forced to cut production, wages and/or their workforce people became unemployed even less spending on consumer goods, etc.
Why did the Wall Street Crash lead to rising poverty in the USA?
Unemployment (see above) people had less money to buy basic necessities (e.g. food) and to pay their mortgages many were forced to go to soup kitchens (set up by charities) for food AND many lost their homes forced to live in shanty towns.
Reduced wages and rising unemployment for workers less demand for agricultural goods prices dropped farmers’ incomes dropped millions of farmers had less money and could not afford mortgage payments one-fifth of farmers lost their land rise in homelessness.
Why did businesses suffer from the effects of the Depression?
People lost confidence in the economy less spending on US goods lower profits for businesses businesses forced to cut production, wages and/or their workforce ( even less spending on goods unable to pay back loans from banks businesses went bankrupt).
Why did farmers suffer during the years of the depression?
- Wages fell and unemployment rates rose demand for agricultural goods fell prices of agricultural goods dropped farmers’ profits dropped unable to pay their mortgages one-fifth of farmers lost their land homelessness farmers were forced to move around looking for work elsewhere.
- Over-farming and drought in the central southern states turned millions of acres into a dust bowl drove farmers off their land.
- Smoot-Hawley Tariff Act other countries retaliated by introducing even higher tariffs on U.S. exports made it harder for farmers to sell their products abroad.
Why did President Hoover’s popularity drop during the years of the depression?
- President Hoover continued to follow the policy of laissez-faire, and was reluctant to interfere to strengthen the economy little was done to support those who suffered Hoover was seen as a “do nothing” President.
- President Hoover believed in the idea of “rugged individualism” Hoover thought it was the responsibility of individuals to succeed on their own and that any relief should be provided by charitable organisations Hoover’s government did little to provide social welfare and relief to those hit the hardest.
- Hoover introduced the Smoot-Hawley Tariff Act to encourage people to buy US goods other countries retaliated by introducing even higher tariffs on U.S. exports made it harder for farmers and businesses to sell their products abroad Hoover blamed for making the situation worse.
- Bonus Marchers (June 1932) Hoover accused of failing to handle the situation well, and not having any sympathy for all those who were suffering due to the Depression.
Why did Roosevelt win the 1932 election?
HOOVER’S POLICIES AND LACK OF POPULARITY
• Hoover was seen as a “do nothing” president, who had little sympathy for people suffering during the Depression, and was doing very little to help them support for Hoover fell and American people were encouraged to vote for another presidential candidate.
ROOSEVELT’S ELECTION CAMPAIGN
• Roosevelt believed in ‘active government’ to improve the lives of ordinary people Americans believed he would help them out of their suffering and provide them with a better future.
• During his presidential campaign, Roosevelt promised a ‘New Deal’ to help improve the economy and end the suffering caused by the Depression gave Americans hope.
• Roosevelt ran an energetic election campaign got his message of a ‘New Deal’ across to the American people.
