Political and Economic Causes of the Great Depression in the Americas

These flashcards cover key vocabulary and concepts related to the political and economic causes of the Great Depression in the Americas.

Weaknesses in the economy (United States)

Overproduction led to 70 million Americans living under the poverty line.

Banking Crisis

30,000 small banks failed due to massive withdrawals during the economic downturn.

Agricultural Problems

Mechanization and overproduction resulted in low prices for agricultural goods.

Smoot-Hawley Tariff

High tariffs that worsened the collapse of global trade by making it hard for Europeans to repay debt.

Canada's Dependency on Exports

80% of wheat, timber, and minerals were exported; drop in US demand affected them significantly.

Buying on Margin

Practice of purchasing shares with borrowed money, leading to overvalued stock prices in Canada.

R.B. Bennett's Unemployment Relief Act

A $20 million initiative by Canadian Prime Minister to assist provinces during the crisis.

Brazil's Coffee Dependence

70% of Brazil's exports were coffee; prices collapsed leading to widespread unemployment.

Stock Market Crash of 1929

Event marking the end of the Roaring Twenties and the onset of the Great Depression.

H. Parker Willis's Perspective

Blamed the Federal Reserve for the Stock Market Crash due to inadequate regulation of banking funds.