wall street crash Flashcards
1
Q
speculation
A
- speculation is a form of gambling
- they didn’t keep shares for long and sold them as soon as price rose
- women were involved in this
- banks got involved in this
- 1928 prices were rising and everything went up because of confidence.
2
Q
weakness of economy
A
- more goods were produced then they could sell
- by 1929 those who could afford goods already had them
- as workers wages didn’t rise and prices did not fall demand decreased
- exporting surplus goods did not work as other countries couldn’t afford and tariffs were a problem.
3
Q
crash
A
- sales were slowing down
- speculators worried about share values
- investors sold shares in panic
- speculators sold all their shares at a fraction of the price they paid for them
- rich lost the most and large speculators.
- confidence was destroyed
4
Q
bank crisis
A
- as people couldn’t afford to pay their loans banks went bankrupt
- 1929 600 banks failed
- people stopped trusting banks and withdrew their money
- 1930 1300 banks failed
5
Q
downward spiral
A
- people kept their money safe and didn’t spend it anymore
- businesses went bankrupt
- people worked less and got paid less
- economic depression
- trade collapsed.
6
Q
depression in the countryside
A
- farm income fell
- farmers could not unable to pay mortgages.
- they tried to resist banks seizing their property
- children were ill from malnutrition
- draughts caused soil to turn to dust. dustbowl
7
Q
depression in towns
A
- unemployment rose rapidly
- couldn’t pay rent so kicked out
- people joined the army for work
- hooverville was a shanty town
- ## people died from malnutrition
8
Q
hoovers failings
A
- tried to restart the economy with tax cuts
- helped banks although his actions were not enough
- people did not want government help.
- servicemen asked for war bonuses. hoover refused to see them and sent MacArthur decided they were all communists so he burned the marches camps
