Topic 4 - The consequences of the Crash and the Great Depression Flashcards
How many American banks went bankrupt between 1929 and 1933?
5000 banks (679 banks closed in 1929 alone)
How many American businesses closed down in 1932 alone?
20,000 businesses
How many Americans had their homes repossessed in 1932 alone?
Nearly a quarter of a million
What proportion of American farmers lost their farms in 1932 alone?
One-fifth
By 1933, by how much (%) had industrial and farm production fallen by?
40%
By 1933, by how much had prices on average fallen by (%)?
50%
By 1933, how much had the average wage of workers fallen by (%)?
60%
By 1933, how many Americans were unemployed?
13 million (this was 25% of the working population)
What was set up by charitable groups to provide food for the poor during the Great Depression?
Soup Kitchens
What was the name given to the shanty towns that were set up in American cities?
“Hoovervilles”. People built shacks in public parks out of planks of wood, cardboard and cloth to live in.
How much did America’s international trade fall by between 1929 and 1932?
It fell from $10 billion (1929) to $3 billion (1932)
How did the Great Depression affect American businesses?
Less people were buying consumer goods (e.g. their wages dropped; they were unemployed; they had lost their savings). This caused the profits of many American businesses to fall and many businesses to go bankrupt.
How many cars were sold in 1932 in comparison to 1929?
4.5 million cars were sold in 1929. Only 1 million cars were sold in 1932.
Why did banks collapse after the Wall Street Crash?
As share prices plummeted during the Wall Street Crash, investors were unable to pay back their bank loans. 659 banks closed in 1929 alone.
How did the American people respond to the closing of banks?
They lost confidence in the banks, and began to withdraw their savings. This caused more banks to collapse.
What happened to the American people who did not withdraw their savings in time before their bank closed?
They lost their money.
As their profits dropped, what were many American businesses forced to do?
They were forced to reduce wages, lay-off workers, or close down.
What were the consequences of mass unemployment?
- Millions of families fell into poverty.
- Millions relied on charity donations to survive (e.g. soup kitchens).
- Many were unable to pay their mortgages and loans, and were evicted from their homes (e.g. nearly a quarter of a million in 1932 alone).
Why did shanty towns appear in American cities?
Those who were unemployed or had lost their homes moved to the cities to seek work. E.g. Many farmers moved to California to find labour work.
What were the consequences of the collapse of many banks?
- Many lost all their money and fell into poverty.
- As many lost their savings, they stopped spending their money on goods.
- Many could not afford mortgage repayments so their homes were repossessed (e.g. nearly a quarter of a million in 1932).
