Test 2-1930s Wall street crash, depression, 1932 and the New Deal and Churchill controversy Flashcards
Why did Wall street crash?
- Overproduction
- Inequality in society
- Speculation/ share price fall
- Laissez-Faire policies
- Confidence
- Foreign tariffs
Overproduction
Modern technology increased efficiency of farming, but this meant there was more produce on the market, less demand, and prices needed to be dropped in order to manage sales. Some farms even had to burn spoilt crops they couldn’t sell.
Speculation/ Share price fall
Speculators were novices of the stock market who invested in dropping stocks with money they couldn’t pay back
Laissez-Faire policies
Laissez-Faire backfired and the government could not assist the stock market as much as it could’ve
Confidence
Some people saw the crash coming and sold their stocks as fast as possible, but others saw this and out of paranoia did the same, and people followed after them, and so on until there were more sellers than buyers, which basically collapsed the stock market
Foreign tariffs
If there was an excess supply of one product in a country, then they could simply sell it to another country, but the tariffs meant you had to pay to do that, making the process alot harder.
Hoover responded to the issue of taxes and tariffs by
Increasing his own coutnry’s trade tariffs; this horribly backfired as in retaliation the other country’s did the same
Hoover responded to the issue of farming/dust bowls by
Virtually nothing as he did not understand much in the area, although he did donate a small sum of money
Hoover responded to the issue of Stock Market by
Cut taxes by about $130M and tried to encourage people to reinvest in the stock market, but it did not do much
Hoover responded to the issue of Unemployment and homelessness by
Making $300M available to states to tackle problems like homelessness and unemployment. However, it was done inefficiently and he was met with criticism that this was the governments responsibility, so he should do his job. He also believed in ‘rugged individualism’ which was basically saying be independent and get better yourself. He also didn’t actually end up giving out $300M but actually only gave out $30M in the end. However, he did set up national programmes for building roads and dams.
The bonus army
A group of army veterans who believed they should be compensated with money they would’ve made had they not helped out in the war. The bonus army march in June 1932 ended up with the army being called in to beat up brave veterans who had fought for their country, severely lowering Hoover’s reputation.
How many people were unemployed by 1932
13M, 25% of America
When was the presidential election that Roosevelt won
1932
What was roosevelt’s main message
The New Deal
How did Roosevelt communicate with the people
Fireside Chats
