The Wall Street Crash and Depression

Question 1

What long term cause caused the wall street crash?

Answer 1

Over production because:
1. 42% of population below poverty line and the could not afford to buy goods.
2. Farming had missed out on the boom- many farmers poor or out of work.
3. because of tariffs us did not have strong relations to export goods made
4.by 1929 people who could afford cars and larger consumer goods had bought them and didn’t need more.
5. America was producing more than it could sell- ware houses full of unsold goods

Question 2

What were the short term causes of the wall street crash?

Answer 2

Keyword- speculation
in 1929- too many people speculating on the stock market, buying shares for a quick profit.
This made share increase in price too quickly and meant shares were worth more than their true value.
Many people had borrowed money to buy shares.
in Sept 1929 share prices began to decrease and people started to loose confidence. Then confidence fell further resulting in the crash.

Question 3

What was the wall street crash?

Answer 3

1. Share prices collapsed on the stock market.
2. Individual people lost thousands and millions of dollars
3. Many went bankrupt
   4- between 1929 and 1932 thousands of banks went bankrupt

Question 4

Name 6 ECONOMIC results of the wall street crash?

Answer 4

1. businesses could no longer sell their goods
2. factories closed down
   3 workers lost their jobs
3. less money to buy goods
   5.more factories closed down
4. more workers lost their jobs

Question 5

Name 5 SOCIAL results of the wall street crash

Answer 5

1. By 1932 12 million people unemployed.
2. No unemployment benefit so many went hungry and lost homes. Many queuing for soup kitchens for something to eat.
   3 Thousands took to living on the road in their cars. Make shift shanty towns set up called ‘hoovervilles’
3. Farmers were worse off- and now even more loosing farms.
4. People lost their savings and went bankrupt.

Question 6

What were the POLITICAL results of the wall street crash?

Answer 6

President hoover tried to help with the depression in 4 ways:
1. He cut taxes to restart the economy
2.He tried to persuade business leaders not to cut wages.
3. He set up the reconstruction finance company to help out banks.
4. He tried to protect american industries by introducing tariffs

Despite this action Hoover was beaten by Roosevelt in the 1932 elections.