USA Flashcards
How did the Wallstreet Crash led to the Depression?
- Banks called in loans and there was a fall in demand.
- Companies cut back on production, workers and wages.
- The more unemployed the less money spent on goods.
- Less money spent, further fall in demand.
- Companies go bust, more unemployed.
- Many more companies go bust, more unemployed, less money spent, further fall in demand and so on…
In 1929 how many people were unemployed?
1.6 million.
In 1933 how many people were unemployed?
14 million.
How did overproduction in American industry led to the Wallstreet Crash?
New mass production methods and mechanisation had the production of consumer goods expand enormously. Too many goods were reaching the market and not enough people could buy them: they already had one.
How did an unequal distribution of wealth led to the Crash?
Most families were only scraping a living and only purchased the essentials. No money could be spent on consumer goods.
How did the panic selling of shares led to the Crash?
Experts spotted a weakness in economy and sold their shares. Small investors panicked and tried to sell their shares which led to a complete collapse of prices and thousands of investors lost millions of dollors.
When was Prohibition introduced?
18th Ammendment
Volstead Act
1919
What was Prohibition?
Profited the manufacture, sale and transportation of alcohol.
What was alcohol said to cause?
3/4 of all poverty and crime.
Which groups campaigned for Prohibition?
Anti-Salon League and Women’s Christian Temperance Movement.
Why was alcohol seen as unpatriotic?
Because during the war, many brewers were German.
What did alcohol do the workforce?
Made workers lazy and inefficient.
How much money did gangs make a year from alcohol during Prohibition?
$2 billion.
Why was organised crime hard to contain?
Agents were appointed to control this activity but due to Americas borders there was too few of them to solve the problem efficiently.
Why was Prohibition repealed?
Organised Crime Big Businesses Corruption Lack of Reinforcement Lack of Pubic Support Profits