How far do you agree with the view that the USA was hit by a major economic downturn in 1929-30 because, by then, America no longer possessed "the capacity to consume" (Source 7, line 10) ?

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Emergency Tariff Act- 1921
Put duty on the importation of agricultural products
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Fordney-McCumber Tariff - 1922
Put duty on industrial products and food imports, up by 38%
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Tarrifs
Duties on imported goods, which raise revenue for the government, but also make foreign good dearer, therefore encouraging the purchase of locally produced goods. Other countries then did the same, which in effect stopped trade
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Protectionism
A government policy which restricts trade from abroad in order to limit competition
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Keynesian
Historical opinion where the root of depression is believed to be due to a lack of sufficient demand and overproduction
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Laissez-faire
To "leave alone" - A Minimalist approach adopted by successive Republican governments whereby they intervene as little as possible
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Dear Money
1929 onwards,stagnates investment by keeping interest rates artificially high to make it more difficult for people to get a loan or credit
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Monetarist
A historical view whereby the root of the depression is caused by a shortage of money and credit caused by the dear money policy pursued by the government
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Insider dealing
The buying or selling of shares by those who know crucial information on the company that is not available to the general public.
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Michael J Meeham
Used insider dealing to manipulate stock investments. He drove the price of Radio Corporation of America up which attracted investors and then quickly sold his shares, he gained massively whilst other investors lost out
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Stock Speculation
The buying and selling of stock without regard for its actual value or the strength of the individual company. Banks were warned that they were making to many loans for stock speculation
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Buying on the margin
Buying shares through a stockbroker without putting up the money for their purchase. As long as share prices were rising, everyone was a winner
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Rugged Individualism
Believed by President Hoover (R) - People should be able to solve their own problems and succeed on their own without government intervention
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Panic selling
People feel that the share prices will fall so quickly sell all their stocks and shares, quickening the fall in share prices. Between Sept and Nov 1929 fell by 50%
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Wall Street Crash
October 1929 Panic selling caused the price of stock and shares to plummet very rapidly resulting in a crash
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Card 2

Front

Put duty on industrial products and food imports, up by 38%

Back

Fordney-McCumber Tariff - 1922

Card 3

Front

Duties on imported goods, which raise revenue for the government, but also make foreign good dearer, therefore encouraging the purchase of locally produced goods. Other countries then did the same, which in effect stopped trade

Back

Preview of the back of card 3

Card 4

Front

A government policy which restricts trade from abroad in order to limit competition

Back

Preview of the back of card 4

Card 5

Front

Historical opinion where the root of depression is believed to be due to a lack of sufficient demand and overproduction

Back

Preview of the back of card 5
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