The Wall Street Crash & The Great Depression Flashcards
Why did people begin to lose confidence in the stock market?
Companies were not making money due to:
↳ overproduction
↳ overseas governments putting tariffs on American goods, in retaliation to America doing the same
What began to happen in September 1929?
- a few cautious people began to sell their shares
What happened on the 24th October 1929?
What was this known as?
- 13 million shares were sold
↳ ‘Black Thursday’
What happened on the 29th October 1929?
What was this known as?
- 16 million shares sold
↳ ‘Black Tuesday’
What was ‘buying on the margin’?
buying shares with borrowed money
How many banks closed in 1929?
659 banks
By 1932, how many people were unemployed?
- 13 million
What was a consequence of the high unemployment?
Suicide rates increased by 50%
How many people became hobos?
2 million
How were ordinary shareholders impacted by the GD?
- lost a fortune
- couldn’t pay off debts, had to sell their personal belongings
- some become homeless
How were factory workers impacted by the GD?
- many lost their jobs
↳ due to underconsumption - faced homelessness
- become hobos
- meant that local businesses were also impacted
How were bank managers impacted by the Gd?
- lost their jobs as many banks closed because they no longer had enough money
How were the very rich impacted by the GD?
- hardly impacted
- may have lost a few household workers
How were the farmers impacted by the GD?
- lost their farms
- couldn’t see any produce
- were already suffering during the economic boom
How was the plight of farmers worsened?
- the Dust Bowl, which made it impossible to grow crops
What were ‘Hoovervilles’?
- slums without proper facilities
- named after President Hoover, whom many felt wasn’t doing enough
In 1930, what did Hoover claim?
- society was over the worst of the GD< but in reality, it was not
What did Hoover believe in?
- Rugged Individualism
↳ if people worked hard enough, they could overcome their troubles
What were breadlines?
- queues formed to give food to the most vulnerable
What was the Hawley-Smoot Act?
When was it passed?
What was its impact?
- increased tariffs on foreign items so that people spent more money on American goods
- 1930
↳ worsened the GD as foreign countries retaliated
What was the Reconstruction Finance Corporation?
When was it established?
What was its impact?
- provided loans to rescue businesses, banks and insurance companies
- 1932
↳ created jobs, decreasing unemployment
↳ but, it was TOO LATE
When did Hoover make $300 million available to states to help the unemployed?
What actually happened?
- 1932
↳ only $30 million was givenout
What was the Bonus Army, and when did the riot occur?
- 25,000 WW1 veterans demanded their early payment of war bonuses
- marched to Washington DC
- 1932
How did Hoover respond to the Bonus Army?
- set the army on them
↳ showing his lack of care
