The Wall Street Crash

Question 1

What were the causes?

Answer 1

1) Over production
2) Unequal distribution of wealth
3) high import tariffs
4) Speculation on stock market

Question 2

When and what did Hoover promise?

Answer 2

March 1929- “A chicken in every pot”

Question 3

What are the effects of the Wall Street crash?

Answer 3

1) People with a lot of shares lost a lot e.g. Vanderbilt family lost $40 million
2) Many borrowed many shares
3) Some investors committed suicide
4) Over 100,000 companies went bankrupt 1929-33
5) Many bans went out of business
6) Unemployed 12 million by 1932
7) Many people homeless so built temporary shelters called Hoovervilles and soup kitchens

Question 4

What happened in September 1929?

Answer 4

Effects of over production means industries are cutting back on production. Leading people with shares to sell as prices are too high

Question 5

What happened on the 24th October 1929?

Answer 5

13 million shares were sold in one day and prices fell massively so no-one wanted to buy