America 1920-1973Deep Dive
The Vicious Cycle of Depression
Part of Causes of the Depression — GCSE History
This deep dive covers The Vicious Cycle of Depression within Causes of the Depression for GCSE History. Revise Causes of the Depression in America 1920-1973 for GCSE History with 10 exam-style questions and 5 flashcards. This is a high-frequency topic, so it is worth revising until the explanation feels precise and repeatable. It is section 4 of 12 in this topic. Use this deep dive to connect the idea to the wider topic before moving on to questions and flashcards.
Topic position
Section 4 of 12
Practice
10 questions
Recall
5 flashcards
⚙️ The Vicious Cycle of Depression
Crash → Banks fail — 5,000 banks collapsed 1929-32. People lost savings.
No savings → No spending — People stopped buying goods
No demand → Factories close — No point making goods no one buys
Factories close → Unemployment — 25% unemployed by 1933
Unemployment → Even less spending — Cycle gets worse and worse
NO GOVERNMENT HELP — Hoover believed in "rugged individualism"