The lead up to the Depression

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What Led To The Depression
-Trade Problems, - Decline in Old Industries, - Farming Problems, - International Debt, - Stock Market Speculation and Lack of Regulation, - Unequal Distribution of Wealth
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What were the Trade Problems?
-Production Rises: Surplus couldn't be sold abroad; - Republican Protectionism led to raising of taxes and retaliation -> cut off international trade; - Surplus Agricultural produce couldn't be sold abroad (links to Farming Problems)
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What were the Farming Problems?
- Out of 5280 farms, there were 3500 foreclosures; - Crops devastated by natural disasters E.G. Bollweevil Plague; - Farmers didn't cut production after WW1 -> overproduction + lowering prices; - Average income was $477 below the national average
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Why did International Debt lead to the Depression?
-Devaluation of British and French currencies made U.S. goods more expensive in Europe; - Great Britain and France didn't have good enough economies to pay back war debts owed to the U.S.
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What were the issues with Stock Market Speculation and Lack of Regulation?
- 1927: FRB lowered
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Other cards in this set

Card 2

Front

What were the Trade Problems?

Back

-Production Rises: Surplus couldn't be sold abroad; - Republican Protectionism led to raising of taxes and retaliation -> cut off international trade; - Surplus Agricultural produce couldn't be sold abroad (links to Farming Problems)

Card 3

Front

What were the Farming Problems?

Back

Preview of the front of card 3

Card 4

Front

Why did International Debt lead to the Depression?

Back

Preview of the front of card 4

Card 5

Front

What were the issues with Stock Market Speculation and Lack of Regulation?

Back

Preview of the front of card 5

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