List the FOUR main underlying problems in the US economy in the 1920s.
Over-production, lack of credit control, tariff controls and unequal incomes.
1 of 30
What was the link between mass production techniques and growing unemployment?
The new machines and assembly lines put people out of work.
2 of 30
Why was ‘Laissez faire’ a problem?
Big business was TOO much in control; greedy & set wages too low; greedy – set prices too high; the government didn’t regulate these problems.
3 of 30
In 1929 newly-elected President Hoover said there would be no more poor people in America. True or False?
True.
4 of 30
How does the Spiral into Depression work? Give 3 steps.
Unemployment goes up, wages fall, people want less goods, firms go broke, unemployment goes up again.
5 of 30
The US set tariffs on foreign goods & other countries retaliated. What was the effect on American goods?
Didn’t sell/They began to stockpile up in warehouses.
6 of 30
Hoover set up the Federal Farm Board to buy surpluses. What happened to the food?
All thrown away.
7 of 30
Why were the small banks in trouble for lending out money?
People couldn’t make the repayments.
8 of 30
Why were the big banks in trouble with foreign countries?
Countries couldn't pay back their loans either.
9 of 30
What is the link between unemployment and bank loans?
Out of work = can’t pay back the loan.
10 of 30
Why did people continue to speculate on the stock market even though things looked bad?
They were over-confident and believed Hoover saying it would get better/only temporary.
11 of 30
The Wall Street Crash happened overnight. True or False?
False.
12 of 30
The ‘Black Thursday’ of 1929 fell in July, September or October?
October.
13 of 30
When the panic buying carried on, what did a group of bankers do?
They bought $250m worth of shares.
14 of 30
Which is correct for the Crash years of 1928 - 1932? - The suicide rate in the US doubled OR The suicide rate in the US increased by 4%
The suicide rate in the US increased by 4%.
15 of 30
The stock market committee controlled the panic by doing – what?
Closed the market for a few days.
16 of 30
What is the link between the stock market crash and bank failure?
Much of the money people lost on shares was borrowed from the banks; the banks also had invested in shares.
17 of 30
Give 3 effects of the Crash on businesses.
Companies couldn’t repay bank loans/Companies went bankrupt/could not get credit for their everyday transactions/their sales went down/sacked workers/closed down.
18 of 30
List TWO actions Hoover took after 1929 to alleviate the Crash.
Cut taxes/put money into government building projects/set up small local schemes for the unemployed.
19 of 30
Give TWO details about Hoover’s organisation the RFC.
Reconstruction Finance Corporation-1932-lent money to banks/businesses- soon extended to cover farming – set up some public works.
20 of 30
Life didn’t change much for the very rich and the very poor. True or False?
True.
21 of 30
Are any of these true about help for the unemployed: Al Capone set up help in Chicago; The Government gave relief payments; Charities set up shelters and soup kitchens; Unemployed signed up for the ‘dole'?
Al Capone set up help in Chicago; Charities set up shelters and soup kitchens.
22 of 30
Some ‘soup kitchens’ weighed children to see if they were starved enough for free food. True or False?
True.
23 of 30
What is the link between the First World War and the Dust Bowl?
To grow war food, the land was over-farmed to a very poor quality.
24 of 30
What happened in 1931 on the Great Plains to make the soil even worse?
A long drought.
25 of 30
What was a ‘Black Blizzard’?
Dry soil blowing in a really dense Dust Storm.
26 of 30
What is the link between migrant workers and broken families?
Men & teenage boys left country homes to find work in the cities.
27 of 30
How did the casual workers known as ‘hobos’ get around the US?
Rode illegally on the goods trains.
28 of 30
Give FIVE reasons why Hoover was unpopular by the time he ran for re-election.
Wouldn’t change policies from ‘laissez faire’ - Resented the RFC as it helped the rich - Federal work projects too late - Few helped by Federal projects- People having to live in shanty towns (Hoovervilles)- Treatment of the bonus Army.
29 of 30
His Democrat opponent FDR won 42 out of 48 states in the 1932 election. True or False?
True.
30 of 30
Other cards in this set
Card 2
Front
What was the link between mass production techniques and growing unemployment?
Back
The new machines and assembly lines put people out of work.
Card 3
Front
Why was ‘Laissez faire’ a problem?
Back
Card 4
Front
In 1929 newly-elected President Hoover said there would be no more poor people in America. True or False?
Back
Card 5
Front
How does the Spiral into Depression work? Give 3 steps.
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