1. Economic Downturn & Recovery - Effect Of Great Depression 1929-45 Flashcards
When was the wall street crash, what did it lead to?
Oct 1929, panic selling of shares led to prices crashing and the collapse of the US stock market. Lead to the Great depression (economic and social slump)
How many people unemployed end of 1929 and by 1932
2.5 million end 1929
13 million end of 1932
Why did many businesses shut down
People want to buy products in the us and abroad
What was family/social life like in the depression?
No social security system so many forced to rely on charity.
Sharp rise in suicides and a fall in marriages and birth rate.
What happened to many farmers in the depression?
Unable to sell produce so became bankrupt, often evicted and became hobos searching for work.
Poor farming methods and a drought in 1931 caused the soil to turn to dust.
Many left their homes to seek work in the fruit-growing areas of the west coast, farmers happy to employ for low wages but locals thought their jobs were stolen.
What happened in cities?
Factories closed down as people stopped spending so production slowed or stopped.
Rapid rise in unemployment, by 1933 1/3 of the workforce was unemployed.
Many couldn’t afford rent and lost their homes, forced to live in shanty towns called hoovervilles.
Black vs white unemployment % by 1933
B- 50%, only 20% W
What was hoover criticised for?
Doing too little to help those affected by the depression
What was hoovers key belief- what was it?
Rugged individualism- a person is responsible for their own life with no help from anyone else, including the government
What were hoovers early policies? (Pre 1932)
New construction & repairs to roads+dams,
Cut taxes by $130 million,
Agricultural marketing act 1930- gov lent money to farmers to ensure that goods were sold at a profit
In 1932 who marched to Washington and asked for what?
Bonus Marchers- 12,000 unemployed war veterans demanding early payment of their war bonuses which were due to be paid in 1945- set up a huge hooverville outside the white House
What was hoovers reaction to the bonus marchers, what did this and his other actions mean for him?
Refused as he felt it was too much, sent in troops to remove them and destroy the shanty Town. Created the impression that hoover didn’t care
Did hoovers early policies work? Why did he set up more in 1932
His policies weren’t working as unemp rose from 1932-32, with the upcoming 1932 election he knew he needed to do more
What were hoovers 1932 policies?
Feb- Reconstruction Finance Corporation- gave $2 billion to banks, insurance companies and railroads designed to strengthen confidence and create jobs.
July- emergency Relief Act- gave $300 million to state govs to help the unemployed.
July- Home Loan Bank Act- 12 regional banks set up to stimulate House building and home ownership
Were hoovers new policies successful, who won the 1932 election?
Had little time to work before the election in november, Roosevelt won on a landslide victory with 42/48 states
