The 1930s Depression

Question 1

What caused wall street crash

Answer 1

Cautious investors began to sell shares

News of falling profits and selling of shares caused panic

Prices of shares dropped dramatically

Many who had bought shares “ on the margin” couldn’t pay the bank back

Banks went bankrupt

People with savings in said banks lost them all

Question 2

Impact of depression

Answer 2

Loss of confidence in banks, the government, hoover

Business’s forced to fire workers they can’t pay

9000 banks close between 1930 - 1933

Industry production fell massively

By late 1932 around 23 percent of working population unemployed

Lots more homeless people, who have to live in shanty towns with cardboard shacks

Question 3

Who was elected president 1933

Answer 3

Roosevelt (Democrats)

Question 4

Factors of the depression

Answer 4

Inequality
60 percent of family’s below poverty line
Republican tax policy’s favoured the rich
Low standard of living for many minorities

Overproduction
People bought on credit so amount of dept in America was rising
Decline in demand as those who could buy the items already had
Industry’s produced more than the population could consume

Tariff war

Laissez-faire meant the government didn’t have regulations to deal with problems

Wall Street crash