Paper 2 Depression Flashcards
what led to the great depression
1929 wall Street Crash
what was great depression like for American’s (4)
life was harder
high unemployment
low wages
homelessness was common
what was the wall street crash (5)
stock market crashed
share prices began to fall
investors panicked and tried to sell shares
speculators couldn’t repay money they borrowed to buy shares
what did Hoover say to win 1928 elections
stressed how wealthy US was and how lucky they were to have luxury items
what was effect of the crash on society (7)
1 banks recalled loans - businesses who couldn’t pay went bankrupt so employment rose
2 unemployment bought less so companies sold less so made less profit so wages reduced or laid off staff
what were Hoovervilles
shanty towns for homeless that appeared in cities
3 social results of the depression
hoovervilles appeared
people relied on charities and soup kitchens
more malnutrition
why were farmers struggling in 20s
demand for food at home and abroad fell
demand for meat dropped which meant it cost more to take animals to market then sell them
many farmers lost jobs, homes and went bankrupt
what else happened to make it hard for farmers
Dust Bowl - drought and wind caused erosion,
dust storms destroyed farms and made them unusable.
More than 2.5 million farmers moved west to find work but there was none
what was Hoovers response to the depression
the republican policy was that people should help themselves and not rely on government help
He encouraged businesses to keep wages high as possible
introduced tax cuts and put tarrifs on overseas good but that just reduced international trade
what did Hoovers weak response result in
he was seen as a do nothing president
his reputation was further damaged by bonus marches
ex soldiers requested pensions paid early - Hoover refused and troops were sent in
Who was elected in 1932
a democrate - Rooservelt
what did he promise (4)
to improve economy - a new deal for American people
an active government
spend money to create jobs
use experts to boost economy
