1.11 The Wall Street Crash and the Great Depression

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What were the main factors that led to the Wall Street Crash?
Market saturation, Government policies, Farming, Land booms, Banking and stock market and war debt
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How did market saturation contribute to the wall street crash?
Companies produced more products even though the demand was declining, people began to put money into the stock market not buying goods, society was under consuming and cycle of production started to reverse
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How did government policies contribute to the Wall Street crash?
By keeping taxes low it led to companies overspending, high tariffs damaged farmers who could export surplus goods abroad, and laissez fair economics led to banks not being subject to regulation
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How did farming contribute to the Wall Street crash?
Increased mechanisation meant many farmers left for the city, improved methods led to overproducing and decreasing product prices, couldn't pay mortgages, rural banks went under + people lost their savings
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How did land booms contribute to the Wall Street crash?
it led to unemployment rising and had a knock on effect on other industries (construction), thousands lost money due to fraud, confidence was lost meaning that people stopped spending and investing
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How did banking and stock markets lead to the Wall Street crash?
More banks used wages, savings and profits to invest in stock markets, more people bought shares the prices began to rise - when shares collapsed people couldn't pay their debts and even under Coolidge before WSC 600 banks went under
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How did war debt contribute to the Wall Street crash?
By the end of the war, the US demanded reparations despite their economies being stable, Europeans had little money to spend on American goods
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What was on the 24th and 29th October 1919?
24th October was 'Black Tuesday' where 12.9 million shares changed hands and 29th October was 'Black Thursday' when US steel company collapsed
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What were the main effects of the Wall street crash?
Factories closed as they couldn't pay wages, unemployment rose, people ceased to buy products - made it harder for producers, wages were cut, banks lost deposits of individuals + corporations and people demanded their savings back off strugglin banks
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What was the main consequence of the Wall Street crash?
The entire banking and stock exchange system collapsed
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Card 2

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How did market saturation contribute to the wall street crash?

Back

Companies produced more products even though the demand was declining, people began to put money into the stock market not buying goods, society was under consuming and cycle of production started to reverse

Card 3

Front

How did government policies contribute to the Wall Street crash?

Back

Preview of the front of card 3

Card 4

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How did farming contribute to the Wall Street crash?

Back

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Card 5

Front

How did land booms contribute to the Wall Street crash?

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Preview of the front of card 5
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