Wall Street Crash Flashcards
(16 cards)
Q: When did the Wall Street Crash take place?
A: In October 1929.
Q: Why is the Wall Street Crash seen as a turning point in global capitalism?
A: Because it triggered the most traumatic collapse of modern capitalism, leading to a worldwide depression.
Q: How many U.S. banks had collapsed by 1931?
A: 2,294 banks.
Q: What happened to U.S. GDP between 1929 and 1932?
A: It fell from $104 billion to $59 billion.
Q: How did unemployment in the U.S. change after the crash?
A: It rose from 4.2% to 23.6%.
Q: How much money did the U.S. have tied up in foreign loans during the crash?
A: Around $6 billion.
Q: What did the U.S. do with its foreign loans after the crash?
A: It recalled them, asking countries like Germany, France, and Britain to repay.
Q: Why was the recall of U.S. loans a disaster?
A: Because most debtor nations were too weak economically to repay, deepening the global crisis.
Q: What is economic nationalism?
A: A policy of prioritising domestic industry and self-sufficiency, often by restricting imports and global trade.
Q: What was the Hawley-Smoot Tariff Act?
A: A 1930 U.S. law that raised tariffs on over 20,000 imported goods to protect American industries.
Q: What did Britain do in response to the depression?
A: Passed the Import Duties Act in 1932, introducing a 10% tariff on imports (except from the Empire), later raised to 20%, and 50% on steel by 1935.
Q: What was France’s trade response in 1932?
A: Maintained free trade with its empire, but imposed high tariffs on goods from outside it.
Q: What other economic strategy did countries use alongside tariffs?
A: Currency devaluation, to make exports cheaper and stimulate economic growth.
Q: What was the global result of widespread tariffs and currency devaluation?
A: A collapse in international trade and cooperation
Q: By how much did world trade shrink between 1929 and 1935?
A: By 65%.
Q: What was the political consequence of the global depression and protectionism?
A: It fuelled instability and helped fascist and militarist regimes rise by promoting economic autarky and aggressive expansionism.
