Wall street crash and the Great Depression Flashcards
How many people were unemployed in 1932?
15 million which was 28% of the population
How long was The Great Depression?
1929-1935
Who was blamed for the Great Depression?
President Herbert Hoover
What is an iconic symbol of the Great Depression?
Hoovervilles (slums)
What caused the Wall street crash?
Buying on the Margin and short term investment Irresponsible banking Prices of stocks exceed real stock value Speculation- panic selling Trade- tariffs on exports Saturation of the market
Why did the market become saturated?
Goods were built to last, therefore once everyone had bought the good, there were no buyers. Therefore, the companies overproduced and production didn’t slow.
What effect did the wall street crash have?
People’s shares became worthless
Debt to banks if buying on margin
Savings gone as dollar falls in value
Led to the Great Depression
Companies failed leading to unemployment
Domino effect on businesses as many went bust
Poverty due to no wages, homelessness rose.
When did the wall street crash start?
Saturday 19th October
What was the worst day of trading?
Wednesday 23rd October, when 2.6 million stocks were sold in the last hour of trading.
