Studied by 5 people
why did farmers suffer in the roaring 20’s?
new machines produced more, bringing lower prices
why did blacks suffer in the 1920’s?
farmers laid them off, so they lived in slums and low wages
why did immigrants suffer in the 1920’s?
low paying jobs and lived in slums
why did old industry workers suffer in the 1920’s?
modern factories left them in the dust
why did overproduction influence the wall street crash?
Overproduction caused a surplus of goods leading to a decrease in prices. This caused businesses to lose money and cut jobs. As a result, consumers had less money to spend, leading to a decrease in demand for goods. The surplus of goods and lack of demand caused a stock market crash, leading to the Great Depression.
what happened to banks after the wall street crash?
Small banks went bust as they didn’t have solvency (no money to back them up).
why was a decrease of consumer spending harmful in the great depression?
Consumer spending is a major driver of economic growth. When people stop buying goods and services, businesses suffer and are forced to lay off workers. This creates a vicious cycle of reduced spending, lower production, and increased unemployment. As more people lose their jobs, they have less money to spend, which further reduces demand for goods and services. This downward spiral can lead to a prolonged recession or depression.
why did America lending money to European banks hurt them when the depression came?
they recalled their loans, and this destroyed the European banks, causing a worldwide recession
what where Hoovervilles?
‘towns’ made of huts where homeless peaople lived in through the depression. named after the president at the time, Herbert Hoover.
why was republicans being in power since the beginning of the recession relevant
they were against market intervention because they thought the market would auto regulate, so they didn’t get involved.
why was Hoover hated?
He was a “do nothing” president. He kind of tried to restart the economy, but it was all a failure. Then he blocked the Garner-Wagner relief bill, that could have allowed congress to provide 2.1b dollars to provide jobs.
Then the bonus marchers destroyed his public opinion
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Flashcard (128)