2249379
Description
Mind Map by natashaeggs, updated more than 1 year ago
|
Created by natashaeggs
over 9 years ago
|
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Causes of the Great Depression in
America CH.2
- Wall Street Crash
- Uneven distribution of wealth
- income distribution
- employment
- old industries
- Women
- Native and African-Americans
- income distribution
- Rural poverty
- Farmers' economic problems
- role of government
- agirculture businesses
- Farmers' economic problems
- Instability of 'get-rich-quick' schemes
- Florida land boom (1920-1925) - people invested in
unseen developments hoping to sell and make quick
profit- but demand tailed off in 1926 - hurricanes in
1926 killed 400 and left 50,000 homeless - people
were bankrupt and the land boom collapsed
- Stock market speculation - 1927-1929 - people invested in
stocks and shares as a speculation - if prices rose shares
were sold -quick and easy profit - eg Radio Corportation of
America rose from 85 to 420 points in 1928 alone
- Florida land boom (1920-1925) - people invested in
unseen developments hoping to sell and make quick
profit- but demand tailed off in 1926 - hurricanes in
1926 killed 400 and left 50,000 homeless - people
were bankrupt and the land boom collapsed
- Problems with the banking system
- out of date by 1920s
- the reserve banks
represented the interests of
the bankers and so could not
be relied on to act in the best
interests of the nation if there
were conflicts of interests
- local state
banks didn't
have to join the
centralised
system, most
people's money
was invested in
the local banks
so they lost all
their money
- reserve banks limited the
amount of money in
circulation during GD ->
high interest rates for banks
and less money available
for borrowing
- out of date by 1920s
- Cycle of international debt
- loan repayment was a major problem
- Dawes
and
Young
Plans -
meant
US was
paying
itself
the
money
back
- US investment abroad - Europe had
borrowed loans that the US needed
them to payback but the countries
just could not afford to or make the
money in order to
- loan repayment was a major problem
- Slowdown in the economy
- small businesses -growth of huge corporations with
huge marketing power -absorbed smaller ones - or
smaller ones couldn't compete - e.g motor vehicle
companies from 108 in 1920 to 44 by end of decade
- construction industry - boom in 1920s- demand
tailed off after 1926 - fall in demand for materials,
skills and transportation - unemployment and
knock-on effects followed
- falling domestic demand- production outstripping
demand - market flooded with goods that couldn't
be sold
- small businesses -growth of huge corporations with
huge marketing power -absorbed smaller ones - or
smaller ones couldn't compete - e.g motor vehicle
companies from 108 in 1920 to 44 by end of decade
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