wall street crash

• In what month and year did the Wall Street Crash occur?

  October 1929
• In what month and year did Herbert Hoover become president?

  March 1929
• What was a key underlying factor that contributed to the economic disaster of 1929 despite the apparent prosperity?

  Too much expansion and borrowing/spending
• According to the text, what are risks if stock market prices fell or business sales decreased?

  Affect the cycle of prosperity
• What are the components of the cycle of prosperity?

  • Confidence
  • Economic gain
  • Faster buying
  • Speed up in industry
  • Increase in production
• What did Hoover promise regarding the continuation of the boom?

  A chicken in every pot
• What did Hoover boast about America's progress regarding poverty?

  Nearer to the final triumph over poverty
• Which groups did Hoover ignore who were not benefiting from the boom?

  Farmers and African Americans
• In what month and year did the effects of overproduction lead to a decrease in production?

  June 1929
• What impact did decreased production have on the cycle of prosperity?

  Negative impact
• In what month and year did investors begin to worry about prices and warn of a potential crash?

  September 1929
• How did banks initially respond to the worries about prices in September 1929?

  Buying up vast numbers of shares
• What was the day called when 13 million shares were sold on Wall Street?

  Black Thursday
• On what date did 'Black Thursday' occur?

  24 Oct 1929
• What was the immediate impact of 'Black Thursday' on the stock market?

  Share prices plummeted
• What happened to the price of Radio shares between September 1929 and two months later?

  Fell from 505 cents to 28 cents
• Why couldn't banks continue to stabilize the market by buying shares?

  The scale was too huge
• What happened on 29 Oct 1929?

  Investors sold shares at any price
• What phrase did Hoover use to express his optimism?

  Prosperity is just around the corner
• What was Hoover's initial reaction to the crash?

  Assumed prosperity would soon return
• What actions did Hoover eventually take to help?

  Cutting taxes and providing soup kitchens
• What was the period following the crash called?

  The Great Depression
• In which years did the Great Depression worsen?

  1931 and 1932
• What are the components of the cycle of depression?

  • Unemployment
  • Economic hardship
  • Slower buying
  • Slowdown in industry
  • Reduction in production
  • Panic
• What was the primary impact on investors due to the fall in share prices?

  Massive losses
• What happened to small investors who had borrowed money from banks using their homes as security?

  Lost their homes
• By what percentage did shares lose their value during the first three years after the crash?

  80%
• What did companies do in response to the economic downturn?

  Reduced workforce and production levels
• How many companies went bankrupt between 1929 and 1933?

  100,000+
• What fraction was the production of manufactured goods in 1933 compared to before the crash?

  1/5
• What did banks do that worsened the economic situation?

  Demanded loans back from businesses
• What was the overall economic impact of the crash?

  Massive economic depression
• What were the temporary "homes" for the homeless called?

  Hoovervilles
• What were some of the effects of the depression on individuals?

  Suicide/depression of investors
• How many people were unemployed in 1932?

  12 million
• What policies contributed to the insufficient controls on banks and businesses?

  Republican labour faire policy
• By what year did unemployment rise to 12 million?

  1932
• What were some of the impacts of unemployment?

  Drop in standard of living
• Which types of professionals were impacted by the depression?

  Professionals invested in shares/banks
• Why were there fewer managerial positions available?

  Businesses going bankrupt