The Bust Spiral Flashcards
Why did industrial production drop and by how much?
Because businesses and farmers had been overproducing now faced a decline in demand at home and abroad. Production dropped by 45%
Why couldn’t the banks offer loans?
Because they were facing economic problems
When did the economy go into a great depression
The 1930s
Who didn’t suffer much?
The very rich lost money, but still had more
Gangsters he made money from the prohibition
People who had saved with banks that didn’t collapse
People he didn’t lose their homes or job
How much money had the USA lent its European allies after World War I?
Just under $10 million altogether – evenings are being repaid, but no country was able to pay everything at once
The USA imported less goods how did this affect them?
Other countries also bought less from them, why?
America produced less and made less money, this created an implement so people have even less money to spend.
Because other countries were trying to save money to repay loans
What happened between 1929 and 1934?
World trade dropped by 66%
Why was the bus to spiral and usually rapid and widespread?
Because the pain was based on realistic expectations and the underlying economic problems
