Why did the Great Crash have such a significant impact on the USA? (Before…
Why did the Great Crash have such a significant impact on the USA?
Before the great crash
Cars became more affordable so people could live away from where they worked
Rise in wages led to new patterns of consumption and the expansion of credit
Technology was becoming more and more affordable many people used radios to get information.
The income of workers increased and people could by items on credit
Mass production spread new consumer goods because of this it made products less expensive and more people could afford the goods
The economy grew 42%
The immigration act of 1924, immigration was limitied for each nationality to two percent of the total number of people of that nationality that was recorded
Eventually, people saw that prohibition was causing more problems than when alcohol was legal and the ban was lifted with the 21th amendment
The was a rise of gang activity, violence, and bootlegging because alcohol was made illegal
The 18th amendment made it illegal to sell, buy, or consume alcohol
Women of the 20's
Due to the 19th amendment slowly bu surely both men and women had equal rights
The passing of the 19th amendment gave women suffrage
Women began to take up the working world and gained more independence than they had before
The term Flapper became common as women chose to ignore tradition standards of women. It emphasised the need for independence of young women
Start and effects of the Great Crash
The stock market crash
Selling stocks led to factories to lay off workers to save money and pay off any loans
Drop in stocks worried businessmen and they were quick to sell stocks
Known as Black Thursday, Dow Jones Industrial average dropped 11% worrying people
Smooth Hawley Tariff Act
It put tariffs on over 20,000 imported goods
It was created to help protect american farmers from over sea competition by applying a protectionist policy
Act was first introduced to congress in 1929 and was made law 1930.
Drop in economy
Poverty started to spread because many were unemployed
Some blame the Federal Reserve for not supporting the banks dept began to grow and money was loosing value.
Many people loosing there jobs made them unable to by products and slowly but surly companies went out of business
Stock market crash led people to panic banks were going out of business and people were quick to withdraw all the money they had from banks