Flashcards in Great Depression Deck (32):
What caused the Great Depression to occur?
Distribution of Wealth
What caused the Great Depression to occur in Industry?
RR, textile, steel were declining.
RR fell due to new forms of transportation.
Lumber and mining industry fell due to new forms of energy (oil, natural gas, and hydroelectric power).
The housing market dropped; therefore, lumber market falls.
What caused the Great Depression to occur in Farming?
No one suffers more than farms.
They were trying to produce more crops (like durg war) because they industrial equipment.
They did not adjust from after WWI.
Post WWI, demand drops 40%.
Effects, cant pay back banks and loans, banks forclose, farmers lose their land and farms, rural banks close. OVERPRODUCING
What caused the Great Depression to occur in Consumer Spending?
Consumers overbuy on credit, so they gradually pay back.
Paying on installement contributes to this.
Consumer debt goes up.
THey owe money. It slows down because workers have a salery freeze during WWI.
They wanted to end the freeze.
What caused the Great Depression to occur in Distribution of Wealth?
There was a large gap between rich and poor.
In 1920s, the top 1% had their income rise by 75% while the other 99% only had it increase 9%
70% of AMericans were only $2500 dollars (bare minimum to live)
One average, they would buy clothes once a year
Most did not buy the mass produced consumer goods
What caused the Great Depression to occur in Stock Market?
Stock Market: Based on the trading of stock.
When was Black Tuesday?
October 29, 1929
What is Black Tuesday?
Stock market crashed
4 million Americans invested in stocks.
Radically impacts business and people (which trickles own to people)
What was Family life?
schools for boys with no parents (wild boys)
girls in school shortened
teens were kicked out of house
Starvation and digestion disease;
hobos were attacked by armed guards (Bulls) beat them. Soup kitchens were used to help stop ths
Suicide went up 30%,
3 times more people were admitted to mental institutes, men would abandon their families and become hobos when lost jobs,
communal sharing: people would work amoungst each other for resources
3% to 25% in 1933;
50% of blacks were unemployment;
working women were resented because women could usually keep their jobs
Burying on Margin?
Buying stocks on little down payment and borrowing the rest;
if the stock drops on value, the investor will not pay the loan.
Buying stocks to flip for a quick profit
One share; many ownership in a company
Where the governemtn does not regulate or interfer on stock market or economy
The stock market is strong
The stock marktet is weak
Shantytowns AKA Hoovervilles?
For people who live in unemployment areas
money goes to the poor people to help them directly
Hoover created a fund for banks,
RR, and industries (trickles down to the masses where it helps industries grow to get money to the people slowly like Reagan)
DOES NOT BENIFIT PEOPLE DIRECTLY
Supply and Demand?
The more you produce, less demand
Who were the lowest paid groups?
Latino and blacks
in 1931 (tried for raping two white girls with no evidence and given 99 years)
People take care of themselves and their families (Hoover’s idea):
Bonus Expendary Force?
Bonus Army was a group of WWI vetrans that wanted to get paid the Bonus they were promised during the war
They went down to Pennsylvania Aveand rioted
Governemtn promised $500 in 1945 but they wanted it earilier
It was resolved by General MacArther using force with the army through bayonets, tear gas, and forced them to leave
What party did blacks transition from?
Republican to Democrats
What was Hoover's RFC?
Trickle down plan
used 2 billion dollars to help industries
Government makes jobs for laborers
How lond did the Stock market crash last?
banks tried to save it
How many shares wer esold at the end of the 2 week crash?