Great Depression and New Deal Study Guide

Question 1

how did the stock market cause the great depression

Answer 1

Many lost all of their life savings when the stock market crashed, sent thousands into poverty

Question 2

what are the 4 cause of the depression

Answer 2

stock market crash
failing ag./dust bowl
credit
overproduction

Question 3

how did the failing ag./dust bowl cause the great depression

Answer 3

destroyed crops, no food to eat

Question 4

how did credit causes the great depression

Answer 4

buying on margin, borrowing money, stock crashed, and money was lost

Question 5

how did overproduction cause the great depression

Answer 5

too much stuff/factories and farms, noone had money to buy

Question 6

what are three ways that pres. Herbert Hoover adressed the Depression

Answer 6

Trickle Down Policy
Reconstruction Finance Corp.
EMrg. Relief Act

Question 7

Trickle Down Policy

Answer 7

• asked business not to cut wages/production
• wanted city and state gov. to fund building projects
• setup farm board to lend money to farmers to form co-ops and sell crops as a group

Question 8

Reconstruction Finance Corp

Answer 8

PRovided financial support to state an local gov. and made loans to banks, RR, mortgage assoc., and other buisness

Question 9

Emergency Relief Act

Answer 9

Put money into public works programs, which were gov. funded (relief) projects to build public facilities and create jobs

Question 10

how did the great depression affect farmers

Answer 10

lost their crops from the dust bowl

Question 11

how did the GD affect workers

Answer 11

many laid off from their jobs, lost money

Question 12

how did GD affect banks

Answer 12

many closed, lost others’ savings

Question 13

how did GD affect the econ.

Answer 13

Crashed w/ stock market, virtually no economic activity

Question 14

how did GD affect buisnesses

Answer 14

collapsed w/ stock market

Question 15

how did GD affect gov

Answer 15

people expected gov. to have all the answers, held responsible for all misfortune US citizens inherited from the GD

Question 16

how did GD affect foreign countries

Answer 16

tried to protect their industries by raising tariffs on imported goods

Question 17

Whata was the Bonus Army? Why did the BOnus army lobby congress?

Answer 17

a group of WWII vets that demanded cash payment redepmtion of their service certificates, which is why they lobbied congress

Question 18

define escapsism. How did people escape the harsh reality of the GD?

Answer 18

Escapism- Tendency to seek distraction and relief from unpleasant realities, sought entertainment or engaged in fantasy. People escaped harsh reality of the GD through escapism and entertainment

Question 19

How did the New Deal assist farmers

Answer 19

AAA(Ag. Adj. Act) Encouraged those still farming to grow fewer crops, so there;d be less produce on the markets crop prices would rise, thus benefiting farmers, not consumers

Question 20

what were the 3 goals of FDR’s New Deal

Answer 20

Relief- imediate relief for issues
Recovery- rebuild from issues
Reform- Prevent some issues from happening again

Question 21

whats an ex. of a relief program

Answer 21

Farm security Admin(FSA)

1937. (Formely caled Resettlement Admin) aided sharecroppers

Question 22

ex. of recovery program

Answer 22

TN Valley Authority (TVA)

Econ. devlp. of TN river, watershed and increased jobs from 20 dams built

Question 23

ex. of reform program

Answer 23

Fed. Housing Admin(FHA)

Improve housing standards and conditions and insure mortgages

Question 24

what wass AAA

Answer 24

Ag. Adj. Act
Paid farmers to grow less (decided unconstitutional)
(Recovery)

Question 25

What was the Social Security Act

Answer 25

(Reform) PRovided gov. aid retired and unemployed

Question 26

FDIC

Answer 26

Fed. Deposit Insurance Corp.

Granted deposits in individusal bank accounts

Question 27

SEC

Answer 27

Securities and Exchange Commision
Required full disclosure of info. on stocs being sold. SEC regulated the stock market. Reserve board to reg. purchase of stock on margin

Question 28

Fireside CHats

Answer 28

Series of radio broadcats by FDR in response to GD

Question 29

Hooverville

Answer 29

nickname given to shantytowns

Question 30

Speculation

Answer 30

Practice of making high-risk investments in hopes of gaining in return, used in the stock market crash

Question 31

Margin

Answer 31

Borrowing money. Buy stock by paying small portion of what Stock is worth.

Question 32

Depression

Answer 32

Period of declining econ. activity. Effect from stock market crash

Question 33

Court Packing

Answer 33

Roosevelt’s reform to the supreme court by appoint additional justice for every over 70 yrs old. Wanted to raise from 9-15

Question 34

Bank Holiday

Answer 34

Banks closed, transactions suspended across nation except for making change.

Question 35

Huey Long

Answer 35

“Share our wealth” gov. LA gov. Heavy tax on wealthy, Believed everyone should have a house, car, and money, assasinated in 1935

Question 36

Father Coughlin

Answer 36

a. Mad at FDR for not being tough enough on big business

b. Hates communist, Unions, Jews (Hitler?)

Question 37

What was the legacy of the New Deal

Answer 37

Shift in gov, philosophy, as a result, americans believed fed. gov. has responsibility to esnure health of the nations econ. and welfare of its citizens. Didnt end depression but provided Americans w/ econ. security.

Question 38

why was relieving unemployment such a challenge for Pres. Roosevelt

Answer 38

Many people unemployed and businesses weren’t hiring so no one could get a job., unemployment rates were so high it was nearly impossible

Question 39

What was the gov.’s philosophy behind the New Deal

Answer 39

Relief
Recovery
Reform