Wall Street Crash

Question 1

how did problems with farming lead to the Wall Street Crash?(long term)

Answer 1

• farmers overproduced and were ran out of business
• prices feel and income dropped
• was difficult for unemployed farmers to get a job so a huge amount of people were put out of a job

Question 2

How were Republican policies a cause for the Wall Street Crash?(long term)

Answer 2

• Europe put up tariffs in response to American tariffs
• So when American sales were falling they couldn’t sell abroad because Europe did not want to pay for expensive American imports
• Lassiez Faire meant that wages remained low and workers couldn’t afford good
• trusts led to overproduction causing prices to plummet

Question 3

How was overproduction a cause for the Wall Street Crash?

Answer 3

• 1920’s saw improved production techniques
• Production line cause great increase in production
• Demand for buying expensive cars and consumer goods were struggling to keep up
• prices fall
• too many cars and not enough customers

Question 4

How was Speculation a cause for the wall street crash?

Answer 4

• Banks lent money out to people to buy shares/$9 billion in 1929
• 1929 20 million people were gambling their money
• people were buying on margin so the investors only had to pay 10% and the banks paid the other 90% and were re-payed from share profits
• People were borrowing to buy shares which meant banks used investors money

Question 5

What impact did the crash have on industries?

Answer 5

• people kept the money instead of spending it so many businesses cut wages
• Wages fell by 60%
• by 1933 500 banks went bankrupt
• US international trade fell by $7 billion

Question 6

What impact did the Wall Street Crash have on the Banking Crisis?

Answer 6

• $1 billion withdrawn and stored at home as banks could not be trusted
• 1930 1352 banks closed
• banks went bankrupt as they had lost people money by buying shares
• overall 5000 banks were bankrupt from the depression

Question 7

How were Farmers affected by the Crash?

Answer 7

• Farmers unable to pay mortgages
• 1 in 20 farmers evicted
• Most farmers travelled down route 66
• farmers were forced to kill livestock as cost of transporting them was more than selling them

Question 8

How were towns affected by the crash?

Answer 8

• 50% of Cleveland were unemployed
• parks filled with homeless
• Shanty towns called Hoovervilles were where people had to live/blamed Hoover for depression
• beggers nicknamed panhandlers
• Hoover blankets were newspapers homeless slept in