USA - Reasons for the Economic of 1929-1933

Question 1

Economic Crisis 1929-33

Answer 1

• Wall street crash
• Overproduction
• Unsound banking system
• Policies of republican governments

Question 2

Intro (Economic 1929-33)

Answer 2

• ‘Roaring 20s’ economic boom

- Structure; background, this factor… others are, this essay, link

Question 3

Wall Street Crash (Econ 1929-33)

Answer 3

• Small investors get rich quick (buying on the margin), blind uninformed faith in stock market
• Speculative buying caused loss (Black Thursday 24th October 1929), confidence lost in investors
• • Billions lost in investments in few days

Question 4

Unsound Banking System (Econ 1929-33)

Answer 4

• Laissez Faire left reliability low (1921, over 30,000 banks across US), state level so limited assets
• Money given to anyone resulted more lost (1929, 659 closed $200million lost, 1933, 2,294 closed $1,700million lost), money loaned to people with no idea
• • Success early 20s resulted false confidence in new

Question 5

Over Production of Goods (Econ 1929-33)

Answer 5

• Foreign tariffs resulted in low profits (people payed low wage, couldn’t afford, no one buys -> overproduction), no circulation of money
• Companies made cheaper goods (Henry Ford Model T, 1920 8million, 1929 23million), by lowering value dodged economic crisis
• • “When I’m through everyone will be able to afford one, and about everyone will have one” Henry Ford-Model T

Question 6

Policies of Republican Governments (Econ 1929-33)

Answer 6

• Attitude led to very little help (Laissez Faire), government unwilling to help, people to fix themselves
• Capitalist made escape difficult (top 5% 33% wealth), average person affected by crisis
• • President Herbert Hoover $2billion to public works 33

Question 7

Conclusion (Econ 1929-33)

Answer 7

• Judgment and reasons for

- Other factors in order (reasons for)