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7 Cards in this Set
- Front
- Back
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When did Wall Street crash? |
1929 |
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What were the 4 main causes of the Wall Street crash? |
-over production -unequal distribution of wealth -high import tariffs of American goods -speculation on the stock market |
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How did over production lead to the Wall Street crash? |
-companies were making too much consumer goods than they could sell, caused prices to fall and unemployment to rise -5% of the population had 1/3 of Americas money -40% were living in poverty |
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How did unequal wealth lead to the Wall Street crash in 1929? |
-1/3 of the USA money went to 5% of the population -as unemployment rose, more people lived in poverty and even less could afford products -40% couldn't afford food housing -rich got richer but the poor got poorer |
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How did tariffs lead to the Wall Street crash in 1929? |
-countries outside the US put high taxes on American goods which made them too expensive so, domestic market became saturated and there was nowhere for Americans to sell -1930 Hawley smoot tariff increase international taxes further which lead to a further increase in prices and decrease in spending |
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How did speculation on the stock market cause Wall Street to crash? |
-inexperienced people were investing heavily into shares hoping to make money fast, once companies fell in value, panic rose which triggered the crash -bull market lead to bear market -13 million shares were sold in 1 day -people took loans to buy shares 9 billion by 1929, could not pay banks back so homes were repossessed |
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Effects of Wall Street crash were... |
-over 100,000 companies and banks went bankrupt between 1929-33 -unemployment rose to 12 million by 1932 -people with shares eg Vanderbilt family lost $40 million -investors committed Suicide -homelessness rose live in temporary shelters called Hoovervilles |
