The Great Depression Flashcards
Why did the profits of American companies begin to fall?
- Overproduction
- Other countries had placed tariffs on US-made goods
Why did people begin to sell their shares?
Word spread that the value of them were dropping
When was the Wall Street Crash?
24th October 1929
How many shares were sold on Black Thursday?
13 million
Why did banks go bust?
Banks had loaned money to people buying shares. Due to the drop in profit, many people could not pay them back.
How many banks went bust in 1929?
659
Why did farmers suffer because of the Crash?
The average American had a lot less money, so less food was bought -> farmers lost money
How many farmers had been evicted by 1932? Why?
1 in 20. They couldn’t pay their mortgages
Why did many farmers move to Oregon and California to find work?
A drought, combined with unsustainable farming methods meant that there was millions of acres of dry land and the farmers could not work back home. They fled to the West to find work on fruit farms.
However, people in the West were also struggling and life did not improve for most farmers.
Why did many workers suffer?
- Factories closed
- Businesses had to sack their staff
- There was a knock-on effect (e.g: people had less money to eat, so could not go to restaurants -> restaurants closed)
How many cars were sold in 1930?
Less than a quarter of that in 1927
By 1932, how many people were losing their jobs?
12,000 a day
How much of the American workforce was unemployed by 1932?
25%
What were “hobos”?
Unemployed people who travelled to look for work
What were Hoovervilles?
Shanty towns built by homeless people
What were breadlines?
The long queues for charity soup kitchens
What ideology did President Hoover believe in?
Rugged individualism
Give 2 examples of things Hoover did to lessen the impact of the Depression?
Set up projects to create construction jobs, cut taxes, etc.
How did Hoover make it clear he was out of touch with the American people?
25,000 unemployed ex-army soldiers marched to Washington DC to protest and ask for their “bonus” (pension). Hoover asked the military to drive away the “Bonus Army” with guns, tear gas and tanks.
Who were the candidates for the 1932 presidential election?
Herbert Hoover (Republican), Franklin D. Roosevelt (Democratic)
Give an example that shows how unpopular Hoover was.
- Pelted with eggs and tomatoes
- Met with signs saying “Hang Hoover”
What “3 Rs” did FDR’s New Deal campaign for? Explain each one.
- Relief - help for the sick, old, unemployed, homeless
- Recovery - government schemes to create jobs
- Reform - changes to American society to ensure another Depression wouldn’t happen
How many states did FDR win in the election?
42 out of the 48 - the biggest margin of victory in recorded US history
