The Depression Flashcards
What were the causes of the Wall Street Crash?
> Overproduction- companies produced more goods than people wanted so profits for firms fell reducing their stock returns.
Over speculation- when prices dropped slightly, people speculated about the collapse of the shares so mass selling ensued.
US Protectionism- where foreign goods were not allowed to be sold leading to US goods having no market abroad further reducing the profits of companies.
Describe the events of the Wall Street Crash.
> London Stock Market Crash- As bankers in London were found of fraud in September, the US Market was affected by this.
Black Thursday 1929- nearly 13million shares were sold. Leading bankers like the Rockefellers tried to salvage the market but did not work.
Black Tuesday 1929- worst day ever with nearly 16.5million shares sold and the stock market lost all value.
What was unemployment in the Depression?
Around 13million people were unemployed which was more than a quarter of the workforce.
What was Hoover’s reaction to the crash?
Continued Laissez faire and Rugged Individualism.
Persuaded business leaders not to cut wages or production.
Set up the Reconstruction Finance Corporation- gave $2billion to banks and companies.
Emergency Relief Act- gave $300million to help the unemployed
Home Loans Bank Act- $125million given to banks to stimulate house building.
What were Hoovervilles?
They were shanty towns built by the homeless in cities like in NY Central Park. Houses were just made from scraps.
Hoover blankets were newspapers, Hoover Wagons were horse tied to cars.
What were Bonus Marches
The government has promised WWI veterans a bonus payable in 1945 but they wanted ti now. June 1932 a force of 12.000 veterans marched on Washington DC to persuade them to pass bill to give them bonus.d
The battle of Anacostia field when the Army was called in to raze the veteran camp.
Where did the Dust Bowl happen?
The US Midwest and Texas was affected where poor farming techniques led to soil erosion.
The Move West
More than 1million people moved west from the Dust Bowl area and were nicknamed Okies and Arkies.
