The Great Depression Flashcards
In what ways was American industry making people’s lives better.
Companies extended credit, Americans could also “ play the market”, Fords model T Alamo made people’s lives easier.
What does it mean to buy stock “on margin”? How could this be a problem?
Only buy 10% of stock and buy 90% from banks and this was a problem because if stocks fail then people will lose money they don’t have.
Why did so many Americans have more leisure time in the 20s?
They had more money and labor saving devices.
Why would many American writers move to Europe?
They wanted to gain perspective on WWI
What happened on Black Thursday? Why is it remembered as the beginning/cause of the Depression?
Investors seller their stock, which led to stock prices dropping, and investor confidence collapsing.
What caused so many banks to fail during the Crash?
Most investors couldn’t cover it their loans and Americans lost their stock which led to their collapse.
Why did so many companies need to lay-off or fire so many employees?
They fired them because the companies couldn’t pay all the employees.
What is “Gross National Product”? What happened to it during the Crash?
- The value of all American production
2. It was cut in half during the Crash.
What level was the unemployment rate during the Depression?
23%
Why was Europe so easily affected by the Depression that started in the US?
They didn’t have enough money to purchase American products.
