The Great Depression Flashcards
How was the Wall Street Crash caused?
Some cautious shareholders began to sell their shares, which led to a snowball effect of people selling their shares
What happened on Black Thursday?
On 24th October 1929, 13 million shares were sold- 5x more than usual.
What happened after Black Thursday?
Share prices continued to drop and on 29th October, 16 million shares were sold and the average stock price fell 40 cents. Shareholders lost $8 billion
What effect did the crash have on the banks?
Many Americans took out loans from the bank, however couldn’t pay them back, causing many banks to go bust which meant some people lost all of their savings
What effect the crash have on the rich?
Some people lost part of their wealth, however many owned property and land
What effect the crash have on businessmen and their workers?
There was underconsumption, meaning factory owners cut wages and jobs. This also effected local businesses as it meant fewer people were visiting their stores
What effect the crash have on farmers?
Many farmers struggled to pay loans to banks and faced eviction. The Dust Bowl also made it impossible to farm
What effect the crash have on unemployment?
By 1932, 13 million people had lost jobs which was 25% of the labour force and factor production dropped 45%
What were Hobos and Hoovervilles?
Some unemployed workers travelled the country looking for work. Many moved into makeshift houses called Hoovervilles which criticised Hoover’s slow response. The homeless queued in breadlines for food
What did Hoover do?
Hoover believed in rugged individualism
He did however make $300 million available to states to help the unemployed, but only $30 million was accepted. Hoover introduced a tariff on foreign goods which meant other nations taxed US goods
How did people show their frustration?
Farmers in Iowa chased away government officials who tried to evict farmers and the ‘Bonus Army’ marched to DC and asked for their war pension to be paid early
What were Hoover’s ideas for dealing with the depression?
Hoover believed in rugged individualism and laissez-faire. It took him a long time to make money available to states.
What were Roosevelt’s ideas for dealing with the depression?
As Governor of New York, he spent $20 million of tax money on helping the unemployed. He promised the American people the three R’s as well as a New Deal
