history Flashcards
(91 cards)
did anyone prosper from the great depression?
yes, some groups did well in the depression, i.e. cinema owners and confectionery business. Darrell Lea sweets + McRobertson’s chocolates continued to be very popular despite the shortage of money, and no matter how poor they were, people managed to find the three pence/cents a week to escape to the movies
did all Australians suffer in the great depression
possibly half of the population of Australia was unaffected by the depression and a small percentage actually prospered
key features of the great depression (11)
business closure, decline in spending, sharp fall in prices, bank closure, loss of savings, decline in international trade, the rise of political extremism, political turmoil, widespread poverty, high unemployment, loss of investor confidence
how did business closure contribute to the great depression
banks demanded repayments of loans and investors withdrew their money from the share market
how did decline in spending contribute to the great depression
unemployed people lacked money to buy things and those who did have jobs preferred to hold onto their money
how did sharp fall in prices contribute to the great depression
an oversupply of manufactured goods and no customers forced prices down
how did bank closure contribute to the great depression
customers rushed to withdraw their money and businesses could no longer pay back their debts
how did loss of savings contribute to the great depression
many investors lost their life savings, making less money available
how did decline in international trade contribute to the great depression
the US government sought to protect US businesses by raising tariffs on imports
how did the rise of political extremism contribute to the great depression
extremists parties offered radical solutions that appealed to ordinary people who suffered the most
how did political turmoil contribute to the great depression
different political groups argued for different solutions to the problem
how did widespread poverty contribute to the great depression
without income or government assistance many people could not afford rent or food
how did high unemployment contribute to the great depression
as businesses closed more people became unemployed
how did loss of investor confidence contribute to the great depression
business found it hard to find investors
what % of Australians were unemployed by 1932
32%
what is a depression
a severe downturn in economic activity, which is marked by very high levels of unemployment and low levels of consumer spending and investment
define recession
Demand, profits and investments decline and unemployment often rises.
what was the New York Stock exchange collapse
Throughout the 1920’s the NY stock exchange had been a popular place for people to invest their money because shares could be bought on credit and sold for a profit when the prices of shares increased. This type of trading inflated share prices to unreasonable highs. Shareholders lost confidence and sold their shares. As a result, prices fell rapidly, and the market crashed – stockbrokers and business owners lost everything
how did the NY stock exchange collapse contribute to/start the great depression
After the collapse confidence in the economy evaporated, business closed-down and unemployment increased. Workers lost jobs and wages were severely slashed. As a result, consumers bought less which then led to further cutbacks in production and jobs; governments struggled to control the damaged economy and poverty spread.
why did the depression affect Australia
in the second half of the 1920s the Australian economy suffered from falling wheat and wool prices (halved in 1929 and 1930.), and competition from other commodity-producing countries. Wool & wheat accounted for 75% of the nation’s exporting earnings and so they ended up borrowing money from other countries and so during the 1930’s, the Australian economy was heavily dependent on overseas countries especially great Britain
Due to this, the decline in international trade affected the nation greatly
who suffered the most from the great depression in Australia
the working class
how common was no income in Australia during the depression
one in four families
how long did it take the Australian economy to recover from the great depression
almost 10 years
how many prime ministers of Australia were there during the great depression
3