End of Prosperity 💰 Flashcards
What was overproduction in industry and agriculture?
Where supply was bigger than demand, leaving many unsold goods.
What was ‘buying on credit’?
Poorer people bought goods on credit and as a result, a great deal of them owed money. Leaving companies in financial difficulties as the poor failed to repay debts.
What was Trade Issues?
The Fordney-McCumber Tariff Act imposed a tax on American goods, making them too expensive to buy in Europe.
What happened to property prices?
They increased in the early 1920’s but fell after 1926, leaving people owning houses worth less money than they had paid for it.
Why were too many small banks bad?
Due to laissez-faire policies, many banks were unregulated and didn’t have the resources to cope with the Wall Street Crash, forcing them to close.
What happened to the Stock Market during this time?
Prices of shares increased to unrealistic levels as people continued to buy them.
What was over speculation?
Many people bought shares on the margin, borrowing money for shares then selling them when they were worth more than the debt.
What percentage of purchase price of shares was borrowed in 1929?
75%
When was Black Thursday?
24th October 1929 with 12.8 million shares sold.
When was Black Tuesday?
29th October 1929 with 16 million shares sold.
How many people were unemployed by the end of 1929?
2.5 million people.
A group of bankers attempted to halt the Wall Street Crash by investing how much?
30 million dollars.
