The Great Depression Flashcards
Why was it a problem factories were over producing goods?
Not everyone had the money to buy them and so they wouldn’t get sold
Why did people begin to sell their shares?
They were worried they wouldn’t get their share of company profits at the end of the year
How did people try to make sure their shares were sold?
Dropped their share price to attract a buyer
What lead to the Wall Street crash?
Factories overproducing good, people selling their shares and people dripping their share prices
When did Wall Street crash?
October 24th 1929
What was the Wall Street crash?
13 million shares were sold on Wall Street stock exchange, five times more than usual and share prices in nearly all companies dropped.
What happened on October 29th 1929?
16 million shares were sold and the average price of shares dropped by 40 cents leading share holders to loose a total of $8000 million
What were the effects of the Wall Street crash?
Banks went bankrupt because because when people borrowed money from banks to buy shares, share prices were low so investors couldn’t sell shares for a high price to pay back the bank
How many banks went bankrupt and when?
In 1929, 659 banks went bankrupt
How were the unemployed affected by the Depression?
13 million had no job, 2 million men were homeless and suicides increased by 30%
How were farmers affected by the Depression?
40,000 family farms were repossessed, droughts killed crops in the Great Plains and millions became migrant farm workers.
What was unlucky about farmers in the Great Depression?
There happened to be storms that buried farms
How were businessmen affected by the Depression?
85,000 businesses went bankrupt, 9 million savings accounts vanished and 6000 banks went out of business
What kind of president was hoover seen as?
A do nothing president which was not completely true
How did Hoover try to restart the economy?
Tax cuts
