The great depression Flashcards
What was the New deal ?
Created by FDR it was an idea to solve the great depression
Why was overproduction a cause of the great depression ?
Most Americans already all the products but factories kept overproducing and profits began to fall.
Companies struggled to sell goods abroad because of the Fordney McCumber tax
What was Black Thursday ?
On Tuesday 29th October people began to sell there shares at any price.
16 million shares where sold during the day.
Lost a total of £ 8 billion
What was buying on the margin ?
When people borrowed money from banks to buy shares.
What was the emergency banking act ?
It closed most bank except for well trusted banks
How did buying on margin lead to banks going bankrupt ?
People borrowed money from banks.
Share prices fell and investors couldn’t pay banks back.
Ordinary people lost there life savings.
