Chapter 2.1 Why was the depression so serious? Flashcards
(15 cards)
between october and december 1929, how did unemployment change
from 500,000 to 4 million
what was unemployment at in 1933
15 million
what did the WSC do to america economically
- real wages fell 16% 1929-31
-GNP fell
-construction fell 76% 1929-31
-investment fell 98% 1929-31
why was the federal government reluctant to act
-hoover thought the boom would be short lived
-the republican administration and republican dominated congress did not want to abandon their laissez faire economic policies which had led to prosperity in the 1920s - believed it would lead to economic recovery
why was unemployment such a big issue for america
-in 1929, the usa had no national system of unemployment welfare, down to state governments
-only a few state governments had unemployment welfare systems
-frank murphy, mayor of detriot said in 1932 that the city was on the verge of bankruptcy if it did not get financial aid
what did hoover encourage to support the poor
-voluntarism
-by 1930, soup kitchens and breadlines
-some unemployed workers began selling apples on street corners to make a few dollars
how did employers adopt a preferential system for whites
- in california, spanish speaking hispanic workers affected b a drop in demand for agricultural products
-almost 500,000 mexican citizens forced to leave before 1933
-several states banned non US citizens from public works programmes
-some states willing to pay the rail fare to mexican border
how did black americans face renewed discrimination
-usually the first to be fired
-in milwakee wisconsin, white workers at the Wehr steel industry went on strike, demanding that all BAs be fired
-in Louisianna, Old South, white mobs attacked BA railway workers , killing 10 in an attempt to drive all BAs out o their jobs
how were farmers hit worse by the depression
-1929-32, farm incomes fell by 2/3s
due to a sharp fall in demand and therefpre farm prices
-cotton, main crop of SE saw its price fall 2/3s 1929-32
how did farmers suffer with the collapse of the banking sector
-most farmers had bank loans and used their farms as security for these loans
-600 banks went out of business in 1930, thousands of farmers lost their livelihoods
-Iowa, a state famous for producing pigs and maize, saw one in eight farms go up for auction 1930-32
what did veterans do in 1932
- those who had fought in ww1 marched on washingotn dc
-21,000 demanded that their bonuses they were due in 1945 be paid immediately
-the army was ordered to remove the bonus marchers
-28 july, battle of anacostia flats, the army forcefully evicted the bonus marchers from washington dc using tanks
-2 dead
how did the collapse of the US economy lead to the rise in gangsterism
-started with opposition to prohibition in the 1920s
-by 1930,s illegal networks connected with alcohol, gambling etc
-centre was chicago illinois with Al Capone
-by 1929, federal officials had been trying to mash capone’s bootlegging
-evemtually his gang was infiltrated by us treasury official and he was convicted of tax evasion for 11 years
what did bonnie and clyde do
-1929-33
-;ed a gang from a hideout in Missouri
-robbing bamks and committing murder until they were tracked down and killed in may 1934
what did machine gun kelly do
-achieved fame through bank robbery
how did these gangs get so popular and famous
-fuelled by the FBIs decision to name them public enemies
