The Great Depression Flashcards
(45 cards)
What were the signs of Economic Trouble?
Prices for farm products dropped and farmers income fell.
Lead to farmers had trouble paying off loans
Industries such as textiles and coal mining had been depressed throughout the 1920s.
What did many investors worry about and end up doing?
investors worried that boom might end, they began selling their stocks
What did rash selling cause?
rash selling caused stock prices to fall.
What is margin buying?
brokers asked investors to pay back what they owed. Investors could not repay their loans.
What happened on October 29, 1929 and what did they call it?
Black Tuesday
Stock Market Crashed
What are the causes of the Great Depression?
overproduction, wages did not keep up with the prices, weak banks
What is overproduction?
Factories and farms produced vast amounts of goods.
Why were workers unable to afford to buy many goods?
Wages did not keep up with the prices
What is weak banks?
banks made unwise loans
What are examples of weak banks?
Banks lent money to invest in the stock market
What happened to depositors and how many banks closed?
5,00 banks closed.
depositors lost their money
What ruined investors and what happened without capitol?
The Stock Market Crash ruined investors.
Businesses could no longer grow and expand
Why could businesses no longer turn to banks for capital?
the banks were in trouble
What did factories do?
they cut back on production, they cut wages, and laid off workers
What is bankrupt?
unable to pay debts
What is with a bankrupt business?
it is when a business closed and people lost their jobs
What happened to unemployment rate and what was it number?
unemployment rate soared, 1 in 4 workers were unemployed
What happened to families?
families suffered, marriage and birth rates dropped, and families split up
What did President Herbert Hoover not believe in?
that government should become directly involved in helping to end the business crisis
What are relief programs?
programs to help the needy
What did Hoover oppose and what did he urge?
opposed government relief programs. Instead he urged business leaders to keep workers employed and to maintain wages
What are Soup Kitchens?
places where the hungry could get a free meal
What are public works?
projects built by government for public use. The government hired workers to build schools, construct dams, and pave highways
Who did many blame?
many blamed Hoover for doing too little
