USA 1890-1945

America, AQA, AS, 1890-1945, Stock market, Hoover, Republican Policies, automobiles

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  • Created on: 12-05-12 22:20
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Why did the US Stock market crash in 1929?
Wall Street Crash triggered the depression
Cause by massive loss in confidence and panic
Uncontrolled bear market where everybody tried to sell shares with no buyers
Stock market unregulated ­ basic idea of laissez faire put in place
Stock market was greatly inflated over speculation
Prices of stocks and shares were out of line with the real value of the companies involved
Many of the stocks and shares were brought on credit / Buying on the margin adding to
the overheating of the market
Mania for buying shares with people who had no real knowledge of the stock market and
just wanted quick profit
Crash was always bound to happen
Triggered by major holders trying to offload their holdings leading to a mass panic and
disastrous bear market
Banks lent money to people to buy shares so were tied into the stock market when they
called for their loans in the stock market, it worsened
`;
Explain why the automobile industry expanded during the 1920s
Henry Ford introduced assembly line production meant that the cost of motoring was
low enough for ordinary people especially with the Model T
Ford able to benefit from the availability of cheap labour and lack of business regulation
and high taxation
Demand for cars helped by advertising and the concept of obsolescence meant people
would be prepared to buy a new car even if they hadn't needed it
Cars became a status symbol so pressure to have the newest car increased
Conspicuous consumption people used their cars to send out a message on how far
they had come socially
Access to easy credit
Women were able to drive increased potential demand
Cars became part of the American Dream, associated with the concept of individual
freedom

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How successful were Republican policies in helping the economy of the
USA in the years 1920 to 1932?
1920s:
In the 1920s Republican policies had both positive and negative effects
Laissez faire led to massive increase in easy credit that allowed huge consumer boom
stimulated economy and contributed to the boom
Lack of regulation and policy of laissez faire gave great boost to the development of
industry and business
On the other hand
Republicans policies helped to ensure the boom was superficial and contributed to…read more

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Role of president- Roosevelt keen on this- encouraged Hays to work for this by sending a
second Open Door policy note
Important reasons: Trade opportunities countries like china presented
Hays' determination to protect US economy and trade
How did Hoover respond to the effects of the depression in October
1929?
Strong believer in laissez faire and believed government intervention was too close to
communism and basically un-American
He was shocked by the depression
Believed it could be dealt with by maintaining a laissez faire policy…read more

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