The Great depression Flashcards
What were the issues with US banks?
They were unregulated and they loaned more money for the stock market than commercial ventures
What was the unemployment rate in the 1930s?
25%
What % of people owned shares by 1929?
3%
Why was Americans banking system so weak?
Banks were not centralized, they were often just single banks for towns or cities. If they were closed to going bust they would be unable to get help from other branches.
What did hoover blame the depression on?
WWI due the web of debts to everyone
What did Hoover pass with made made world trade worse?
The hawley-swoot tariff- highest tariffs every seen in the us
What did Hoover try to do in order to revalue the us dollar?
He attempted to convince other countries to abandoned the gold standard. But when other countries didn’t the us didn’t but then Britain did so this weaken trade with Britain more
What happened to credit?
The fed rose the discount rate which made credit even harder to get
How many banks went burst?
9,000 failed
What were Hoovers successes
He was able to get ford and other huge businesses to promise not to cut wages or lay off workers
he set up the federal farm broad
What else did hoover do?
He was able to spend 140 million dollars on civil works notable hoover dam
What did hoover set up in 1932?
the RFC which help bail out banks
What did Hoover rely on?
volunteerism which was not the american way many people would pretend to go out to work when they didnt have a job to avoid the embarrassment thus many would not accept hand outs or offer any
What was the problem with the new York relief program
79 million dollars was less than only one mouths lost wages
How much did the suicide rate increase?
it rose form 12% to around 18%
