The Great Depression

Question 1

What was the main cause of the Great Depression?

Answer 1

In October 1929 the New York stock exchange collapsed

Question 2

Other causes.

Answer 2

1. Speculation
2. Companies produced more goods than they could sell
3. Panicking investors sold share prices as they continued to fall

Question 3

What’s speculation?

Answer 3

Investors used borrowed money to buy shares,

They then anticipated to sell them for quick profits when share prices rose.

Question 4

Who else did this effect and how?

Answer 4

The rest of the world in a rippling manner.

Question 5

Effects of the Great Depression on Australia? (categories)

Answer 5

1. Economic
2. Social

Question 6

Name some economic effects.

Answer 6

1. More workers lost their job in response to the Government cutting spending
2. Imports raised in price

as Australia no longer had the capital to borrow to pay for imports

3. Australia’s earning didn’t increase by much

• even though exports increased in price

Question 7

What did unemployment reach during the decade?

Answer 7

11 per cent

Question 8

Name some social effects?

Answer 8

1. For the rich, barely any were affected

• and some even made money during the decade

2. Farmers were evicted

• they couldn’t meet loan payments
• and by 1929 they were already suffering in debt due to the droughts

3. Workers suffered the most

• Charity could help but
  1. People felt embarrassed
  2. They couldn’t handle the number of people suffering

4. Children

• Malnourished
• Collapsed at school

Question 9

How many children by the age of six suffered malnutrition or a preventable disease? Done by a survey in Melbourne.

Answer 9

10 per cent

Question 10

Who saved farmers? And how did they help?

Answer 10

Government relief and legislation

• Let them pay back the money when conditions improved.