GCSE History

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  1. why did low paid workers suffer
    because there was no fixed minimum wage , nor strong tade unions to bargain for good wages for all . there was no state welfare system of pensions or unemployment or sickness benifit to help the old , the sick or the unemployed
  2. it was generally believed that it was the task of the individual to help himself through private schemes , but the
    poor could not afford to so . Any kind of state provision could only have come from heavier taxes on the wealthy , and this was strongly oposed
  3. as the 1920's wore on , American industries produced
    more goods than people were able to buy
  4. American industries produced more goods than people were able to buy because the new
    technology and mass production techniques allowed vast quantities of goods to be produced , more than actually needed
  5. American industries produced more goods than people were able to buy because the unequal
    distribution of wealth meant that most people who could afford consumer goods had already bought them , so demand for goods fell . Even hire purchase did not help poor people , who couldnt afford consumer goods at all
  6. American industries produced more goods than people were able to buy because when the USA imposed
    tariffs on foreign goods , other countries retaliated by putting tariffs on American goods . This made it very difficult for industrialists and farmers to export their goods . It didnt matter when Americans were buying plenty of goods , but eventually the USA had a saturated market , so the inability to export was a seriuos problem causing overproduction
  7. By 1929 unsold stocks of goods were
    building up . As a result , industrialists cut production and laid off workers . these unemployed workers and their families now could not afford to but consumer goods and the demand fell even further , leading to further cuts in production , more unemployment and so on
  8. the laissez faire policies of the Republican goverment in the 1920's helped buisnesses to grow , but they had some underlying problems including
    • lack of credit controls
    • trusts and monopolies
  9. The 1920's saw the development of ver large buisness firms , such as these owned by ........ , ........ and .............. . these corporations or trusts were formed by smaller firms combining , or by large firms taking over smaller ones . Many of these trusts acquired ...... or ....... ........ in their industry
    • Vanderbilt
    • carnegie
    • rockefeller
    • monopolies
    • near monopolies
  10. by 1929 the wealthiest ......% of corporations had taken over ........% of total corporation income
    • 50
    • 84
  11. trust were able to increase ....... , but they were also able to ---------------------------------------------------------
    • efficiency
    • keep wages lower and prices higher than neccesary , they could also keep trade unions weak by forbidding workers to join them
  12. the Republican governments , who were supporters of buisnessmen and the policy of laissez faire ,did nothing to
    limit the growth of trusts or to protect the rights of workers
  13. keeping wages low and prices higher than neccessary was going to have far reaching effects as it
    reduced the spending power of the workers . This coupled with , a reduction in overseas trade was going to lead to overproduction of goods
  14. had wages kept the pace with profits in the years
    1923-1929 then more would have been sold at home , offsetting the loss of trade overseas . However , America buisness was much more powerful than the unions so was able to keep wages down
  15. As previously stated America could not solve her problems by selling her surplus food and goods to other countries . this was because
    America had put tarrifs on foreign goods comin into the country, so other countries did exactly the same to American goods . this meant that American buisnessmen found it hard to sell abroad
  16. American buisnessmen found it hard to sell abroad . This did not matter if as long as America could
    consume everything made in America , but by 1929 it did matter , as there were huge surpluses of food
  17. by 1929 a
    cycle of depression had set in
  18. reduced demands of goods led to
    factories closing down and workers being made unemployed . This meant there was less money to spend on consumer goods , which further reduced demand and led to more closures
  19. as we have seen , many Americans invested in stocks and shares in the 1920's . In 1924 , .......... million dollars worth of stock and shares were bought and sold . with little effort huge prifits were quickly made
  20. there was such a lot of confidence in the stock that people did not realise
    that the buying of shares is sort of a gamble . Shares can go up and shares can go down
  21. the point of investing is to choose a
    company that is making good profits , so that the investor gets a share in these profits
  22. the point of investing is to choose a company that is making good profits , so that the investor gets a share in these profits however lots of people were new investors , who had never bought shares before , and did not
    understand about the need to think about how reliable a company was . Instead they were taking risks or speculating , in hopes of making a quick profit. Banks were willing to lend money to investors , meaning that much of the spending was done with borrowed money
  23. sales reached a frantic pitch in ......... with sales over $....... million
    • 1928
    • 900
  24. although share prices continued to rise in 1929
    they did not rise as rapidly as they had done in previous years
  25. why did companies say their profits were falling
    due to overproduction , however share prices in these companies were contuniung to rise
  26. some more experienced investors realised that
    share prices had become artificially high , and no longer reflected the true value of the company
  27. these experienced investors knew that share orices had to
    fall , so they began to sell their shares . When other small investors saw this they began to sell too
  28. when was the wall street crash
    october 1929
Card Set:
GCSE History
2012-05-11 07:56:58
USA 1920 part four why did stock exchange collapse 1929

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