The Wall Street Crash & The Great Depression

Question 1

Why did people begin to lose confidence in the stock market?

Answer 1

Companies were not making money due to:
↳ overproduction
↳ overseas governments putting tariffs on American goods, in retaliation to America doing the same

Question 2

What began to happen in September 1929?

Answer 2

• a few cautious people began to sell their shares

Question 3

What happened on the 24th October 1929?
What was this known as?

Answer 3

• 13 million shares were sold
  ↳ ‘Black Thursday’

Question 4

What happened on the 29th October 1929?
What was this known as?

Answer 4

• 16 million shares sold
  ↳ ‘Black Tuesday’

Question 5

What was ‘buying on the margin’?

Answer 5

buying shares with borrowed money

Question 6

How many banks closed in 1929?

Answer 6

659 banks

Question 7

By 1932, how many people were unemployed?

Answer 7

• 13 million

Question 8

What was a consequence of the high unemployment?

Answer 8

Suicide rates increased by 50%

Question 9

How many people became hobos?

Answer 9

2 million

Question 10

How were ordinary shareholders impacted by the GD?

Answer 10

• lost a fortune
• couldn’t pay off debts, had to sell their personal belongings
• some become homeless

Question 11

How were factory workers impacted by the GD?

Answer 11

• many lost their jobs
  ↳ due to underconsumption
• faced homelessness
• become hobos
• meant that local businesses were also impacted

Question 12

How were bank managers impacted by the Gd?

Answer 12

• lost their jobs as many banks closed because they no longer had enough money

Question 13

How were the very rich impacted by the GD?

Answer 13

• hardly impacted
• may have lost a few household workers

Question 14

How were the farmers impacted by the GD?

Answer 14

• lost their farms
• couldn’t see any produce
• were already suffering during the economic boom

Question 15

How was the plight of farmers worsened?

Answer 15

• the Dust Bowl, which made it impossible to grow crops

Question 16

What were ‘Hoovervilles’?

Answer 16

• slums without proper facilities
• named after President Hoover, whom many felt wasn’t doing enough

Question 17

In 1930, what did Hoover claim?

Answer 17

• society was over the worst of the GD< but in reality, it was not

Question 18

What did Hoover believe in?

Answer 18

• Rugged Individualism
  ↳ if people worked hard enough, they could overcome their troubles

Question 19

What were breadlines?

Answer 19

• queues formed to give food to the most vulnerable

Question 20

What was the Hawley-Smoot Act?
When was it passed?
What was its impact?

Answer 20

• increased tariffs on foreign items so that people spent more money on American goods
• 1930
  ↳ worsened the GD as foreign countries retaliated

Question 21

What was the Reconstruction Finance Corporation?
When was it established?
What was its impact?

Answer 21

• provided loans to rescue businesses, banks and insurance companies
• 1932
  ↳ created jobs, decreasing unemployment
  ↳ but, it was TOO LATE

Question 22

When did Hoover make $300 million available to states to help the unemployed?
What actually happened?

Answer 22

• 1932
  ↳ only $30 million was givenout

Question 23

What was the Bonus Army, and when did the riot occur?

Answer 23

• 25,000 WW1 veterans demanded their early payment of war bonuses
• marched to Washington DC
• 1932

Question 24

How did Hoover respond to the Bonus Army?

Answer 24

• set the army on them
  ↳ showing his lack of care