Main Features of Great Depression

Question 1

Short Term Causes

Answer 1

Speculators betting on the stock market
prices of shares outweighed value which caused experts to doubt strength of stock market.
chain reaction of people selling shares
16 million shares traded on Black Tuesday

Question 2

Consequences

Answer 2

Shares lost $29B in value by November
Brokers demanded repayment of loans given to people who bought on margin but inexperienced investors lost everything and couldn’t repay
Customers demanded cash but banks could not pay out.(liquidity problems) Banks closed
businesses invested less > less growth > more people laid off > less money made > struggling economy

Question 3

Mid to Long Term Causes

Answer 3

Underconsumption: 71% Americans had Low Incomes. Wealth Gap cause not many people to benefit from consumerist society.
Overproduction: Construction, textiles, coal, railroads, agriculture(dust storms, drought early 30s) still producing but less people buying.
Failing Banks: limited reserves and no backup if help needed, 1/3 banks part of federal reserve system so govt couldn’t help. Faith in Banks fell because couldn’t repay people.
Problems in Europe: US lent a lot of money, european nations took loans from US to repay. cycle formed on there being money in the US. Money supply cut no way to buy US goods in Europe Exports fall. High tariffs

Question 4

Features

Answer 4

Rising: unemployment, Homelessness, bank failures, business closures
Falling: industrial production, prices, intl. trade, investment

Question 5

Farmers

Answer 5

dust storms dust bowl
overproduction and competition
couldn’t repay loans so some farms dispossessed leads to protests
migration to cities made cities worse bad employment, dirty

Question 6

Industry

Answer 6

1929-32 exports -40%
luxury goods struggle
goods prices down
wages down
people laid off 25% unemployed 1933
busness profits -68%

Question 7

Homelessness

Answer 7

20k children in New York whose parents could no longer help them
homeless people in California
Hobos, people moving around to find temporary work
Hoovervilles: Shanty towns made of scrap materials without basic resources

Question 8

Bonus Marches

Answer 8

Congress passes law in 1924 allowing WW1 Veterans to get bonus in 1945
Veterans needed money now during depression so protested
marched to Washington D.C.
Govt. pays for them to get home but 5000+ stay to protest
police and army fired on veterans tear gas, tanks, burning tents
Ruined Hoover’s career

Question 9

Hoover’s reforms

Answer 9

National Credit Corporation: failing banks
Hawley Smoot Tariff: protectionist tariffs to force americans to buy US goods
Moratorium on WW1 Debts: stop debt collection from europe so they can recover
President’s Emergency Committee for Employment: donations for relief
Public Works: spent more on govt projects so can hire more people
too little too late