Flashcards in 1930s USA: Wall Street Crash / Effects Of The Depression Deck (20):
What is a share?
A part (share) of a company, which means you get a share of the profits.
Why did people buy shares in the 1920s?
Share prices rose quickly so it was a way to make lots of money
How could do many people afford shares?
Banks have out loans easily
What decides the price of a share?
Demand (high demand = high prices)
What did Hoover promise in March 1929?
‘A chicken for every pot’ (more boom)
How many shares were sold on 24th October 1929?
What happened when so many people sold their shares at the same time?
Prices crashed and people lost money
Why did the stock market crash?
Share prices were a lot higher than the business was worth so people panicked about losing money
Why did businesses start to struggle at the end of the 1920s?
They had run out of people to sell their goods to
Why did businesses run out of people to sell their goods to?
Overproduction (they made more than they could sell), not everyone was rich, tarries meant they could not sell abroad
How many businesses went bankrupt between 1929 and 1933?
How many people were unemployed by 1932?
How much did farm income fall by between 1929 and 1933?
What is a Hooverville?
Shanty towns where homeless people built shelters to live in
How much did weekly factory wages fall by?
From $28 to $22
What is rugged individualism?
Hoover and the Republicans.
What did Hoover raise the Hawley-Smoot Tariff to in 1930?
What did the 1932 Emergency Relief Act do?
Gave $300 million to help unemployed people
What measure have loans of $1,500 million businesses?
The Reconstruction Finance Corporation, 1932