History GCSE Depth Study USA

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  • Wall Street Crash
    • Causes
      • Speculation
        • People bought shares and sold them again when the price went up.
      • Overproduction
        • Because of the huge gap between the rich and poor, demand for goods decreased as the rich already had them and the poor couldn't afford them.
      • Lack of Export Market
        • European countries were also experiencing financial difficulties so export sales wouldn't have been possible anyways.
        • Previously, Americans could've exported surplus goods.
          • However due to the Fordney-McCumber Act of 1920, European countries also retaliated with their own tariffs.
      • Banks
        • Banks lent out lot of money for speculation.
      • Loans
        • Americans had previously loaned a lot of money to Europe but when the stock market collapsed they suddenly recalled these loans.
    • Effects
      • By 1933 over a quarter of the workforce was unemployed.
      • Many people moved around for work.
      • Most people lost their jobs as companies couldn't afford to keep them
      • From 1929 to 1930 around 700 banks had closed.
      • Ordinary people lost their life savings.
      • Killed confidence of the people.
  • Overproduction
    • Because of the huge gap between the rich and poor, demand for goods decreased as the rich already had them and the poor couldn't afford them.

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