What Caused The WSC? Flashcards
(63 cards)
What event marked the dramatic end of the economic boom in October 1929?
The Wall Street Crash.
How much did the value of shares on the New York Stock Exchange fall by on the day of the Wall Street Crash?
Almost $4 billion.
What record number of shares changed hands on Tuesday, October 29, 1929?
16 million shares.
By the end of November 1929, how much had been wiped off share values?
$530 billion.
What was the unemployment rate in the USA between October and December 1929?
Rose from 500,000 to four million.
What economic phenomenon followed the Wall Street Crash?
A severe economic slump.
What was the percentage drop in average real wages from 1929 to 1931?
16 percent.
By what percentage did the Gross National Product (GNP) fall between 1929 and 1933?
29 percent.
What was the operating capacity of the US steel industry by 1932?
12 percent capacity.
What happened to national share values from their high in November 1929?
Fell from $87 billion to $56 billion.
By 1933, what was the value of shares that were once worth $87 billion?
$18 billion.
True or False: The Wall Street Crash was a direct cause of the economic slump that followed.
False.
The Wall Street Crash began the biggest economic ______ in US and world history.
depression.
What emotion was manipulated to create fear in the stock market according to the Philadelphia Evening Ledger?
Fear.
What did the propagandists of gloom and economic terror create in the stock market?
An artificial emotion of fright.
What did the lords of the nation’s credit find themselves trying to stop during the crash?
A fall of price.
What is the business cycle?
In western economies like the USA and Britain, economic activity traditionally goes through phases of boom and bust. Economic growth results in rising employment and inflation, while overproduction leads to recession and rising unemployment.
The lowest point of a business cycle is a depression, followed by economic recovery and a boom.
What happened in 1929 regarding the depression?
The depression in 1929 was so severe that governments worldwide were forced to intervene to stimulate recovery, typically through public spending on infrastructure projects.
This occurred in the USA, Britain, and Germany in the 1930s.
What are double-barrelled names for Congressional bills?
US Congressional legislation typically has two names: the first is that of the Senator who introduces the proposal in the Senate, and the second is that of the Congressman or woman who introduces it in the House of Representatives.
What was the impact of overproduction in the 1920s?
In the 1920s, the top five percent of the population benefited most from economic prosperity, leading to a lack of spending power among the majority. By 1929, this group owned 33 percent of the nation’s wealth, while the bottom 40 percent owned only 12.5 percent.
This disparity resulted in overproduction, as the economy lacked the spending power to purchase all produced goods.
What was the Fordney-McCumber Tariff of 1922?
The Fordney-McCumber Tariff of 1922 limited US trade with the rest of the world economy, leading to retaliatory tariffs from foreign countries and reduced US exports.
How did easy credit affect consumption in the US?
Consumption in the US was artificially inflated by easy credit through hire purchase schemes, allowing Americans to buy goods with only a small upfront payment. However, confidence waned after the Wall Street Crash, leading to a rapid drop in consumer spending.
What was the Florida Land Boom?
The Florida Land Boom occurred in the 1920s as many Americans sought to buy property in Florida, attracted by rising incomes and the accessibility provided by the growth of the motor car. Miami’s population grew significantly during this period.
Between 1920 and 1925, Miami’s population grew from 30,000 to 130,000.
