Stock market was seen as a quick way to get rich, by 1929 there were 20 million investors, around 600,000 new investors were speculators, speculation was gambling, get a loan by a share and sell it when the price rises. Buying on the margin 10% cash
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Weaknesses in the US economy
The construction industry had been in downturn since 1926, boom was based on people buying goods, $3 billion in 1929 on adverts, couldn't export - tariffs
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Wall Street Crash
Tuesday 29th October 1929
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Consequences of Wall Street Crash
Hoover cut taxes in 1931, Confidence was lost, 1929 659 banks failed, 1930 1352 went bankrupt, between 1928 and 1933 production fell by 40% and wages by 60%
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The Human Cost of the Depression
Huge numbers of farmers were unable to pay mortgages, in 1932 in Cleveland 50% of workers were unemployed and in Toledo 80%
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Hoover
Hoover was known as the 'do nothing president', June 1932 First World War soldiers marched peacefully asking for War Bonuses early, MacArthur burner camps and used tear gas, Hoover didn't want to admit he'd lost control of MacArthur
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Franklin D Roosevelt
Democrat, 'active government', planned to spend money to get people back to work, not afraid to ask for help from experts
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The Campaign
Roosevelt went on a tour of the USA, made 16 major speeches and 60 from his train, won by 7 million votes
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Other cards in this set
Card 2
Front
Weaknesses in the US economy
Back
The construction industry had been in downturn since 1926, boom was based on people buying goods, $3 billion in 1929 on adverts, couldn't export - tariffs
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