The great depression

Question 1

Reasons for the great depression

Answer 1

Unequal distribution of wealth 60% of families earned below liveable wage
Overproduction - farmers couldn’t sell their crops - it was worth less decline in the need for consumer goods
Couldn’t sell to foreign countries - high tariffs
Lassaiz faire government

Question 2

What was the wall street crash?

Answer 2

In Oct 1929 13 million shares were sold on black thursday
On black tuesday, 16 million were sold
This caused stocks prices to plummet
Shareholders lost money
Shareholders couldn’t pay loans of the banks, so people lost their savings

Question 3

SPEND for impact of the great depression

Answer 3

9000 banks closed from 1930-33
Number of products being sold halved - businesses made less profit
1932 - 23% of pop were unemployed
Loss of faith of the idea of the American dream

Question 4

What was Hoovers ideas on the depression?

Answer 4

Rugged individualism - “prosperity is right around the corner”
Believed it was caused from problems beyond Americas control

Question 5

What were some measures Hoover implemented?

Answer 5

Reconstruction finance corporation - 1932 lended money to businesses in need
Made $300 million available for public works projects - only $30 million used

Question 6

What was Roosevelts New deal?

Answer 6

3 R’s - Relief - help for homeless, sick, unemployed
Recovery - creating jobs and getting economy back on track
Reform - Measures to protect US from another depression
Campaigned heavily all around America

Question 7

What was the1933 Emergency Banking Act?

Answer 7

Temporarily closed all banks - only stable banks allowed to reopen

Question 8

What was the 1933 Economy Act?

Answer 8

All government employees’ pay was cut by 15 per cent - Almost $1 billion was saved

Question 9

What was the 1933 Beer and Wine Revenue Act?

Answer 9

Prohibition was ended - organised crime declined