Wall street crash Flashcards
What 4 things lead to the wall street crash?
Stock market speculation
Overproduction
Tariffs
Unequal wealth
What was the USAs economy reliant on?
Consumerism
What were the effects of overproduction?
Industries cutting back on production
Lead to worry that the share prices were too high so people began to sell
What were the effects of the wall street crash?
People lost shares Could not pay back banks so they lost their homes Investors committed suicide 100,000 companies went bankrupt Banks went out of business Unemployment rose by 12 million by 1932 Homeless lived in Hoovervilles
What did the crash lead to?
The Great Depression
What was overproduction?
Companies were making more goods than they could sell
Caused prices to fall and unemployment to rise
What was unequal distribution of wealth?
The money had been shared out unfairly
The rich got richer
The poor got poorer
What was high import tariffs on American goods?
Countries outside the US made tariffs that made American goods too expensive to buy by other countries
What was speculation on the stock market?
Inexperienced people invested heavily in shares
Once companies shares started to fall people began selling
