a) Speculation on the stock market, b) Unequal distribution of wealth, c) Overproduction, d) Banks were unregulated, e) High import tariffs on American goods, f) Brokers provided expensive loans.
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a) Describe Speculation
Many Americans + banks joined the speculation [buying + selling shares quickly to make money]. People began buying on the margin. When companies started to fall in value --> panic selling began
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b) Describe Unequal Distribution of Wealth
Rising profits were not passed on to workers --> so most people were too poor to spend
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c) Describe Overproduction
Industry was producing more than people wanted to buy = prices fell. Agriculture had struggled through the 1920s with overproduction. Many farmers had gone bankrupt.
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d) Describe Banks Were Unregulated
They were unstable and gambled depositors’ money on the stock exchange.
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f) Describe Brokers Provided Expensive Loans to Enable Investors to Buy Shares
When the stock market crashed, investors could not pay bavk their losns.
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Other cards in this set
Card 2
Front
a) Describe Speculation
Back
Many Americans + banks joined the speculation [buying + selling shares quickly to make money]. People began buying on the margin. When companies started to fall in value --> panic selling began
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