Great Depression Review Flashcards
What caused the Dust Bowl? What were it effects?
Farmers continually plowing prairie fields. Productive value decreased, people moved west to California.
While the Great Depression began in 1929, which group of Americans was in depression in the 1920’s? Why was this so?
Farmers, WWI & the demand declined but production didn’t.
In what phase of the business cycle was the US economy during the 1920’s?
A Boom - major expansion
What weaknesses in the US economy helped lead to the Great Depression?
People were losing money that they had borrowed.
Why were weaknesses in the US economy hidden in the 1920’s?
The installment plan became & people started buying on credit
What event was given the name Black Tuesday?
Stock Market Crash in 1929
Why did the stock market crash in 1929?
Because people were buying on margin. People were taking back money that they had lended.
Why did the US Great Depression spread worldwide?
Prices decline, no one grows as quickly & economy, raised tariffs..
What caused the following during the Great Depression -
a. Collapse of international trade
b. Rapidly increasing unemployment
c. Bank Runs
a. The Hawley - Smoot tariff
b. reduced consumer spending & business closings
c. bank runs - people believed that banks would close and they would lose their money.
Contrast the policies of Hoover and Roosevelt in responding to the Great Depression. Why did they react so differently?
Hoover - believed in lassiez-faire policies and that state and local governments should solve the problems of the Great Depression. Roosevelt believed the Great Depression was a national problem that required a national solution.
Hoover believed the country suffered from a lack of credit. What did he urge Congress to create to create credit?
Reconstruction Finance Corporation
Why did Hoover’s volunteerism fail?
Businesses & Individuals did what was in their best interest (lay-off workers, cut spending), which was not in the best interests of the country
Why did the Bonus Army march on Washington? What was the response of the Hoover administration program?
For early payment of bonus promised them in 1945. The US military forced them to disperse.
Which was the first bill passed by Congress of FDR’s inauguration? Why?
Emergency banking bill - to restore faith in the banking system and stop bank runs
Describe the differing views of opponents of the New Deal? What group organized in opposition to the New Deal?
Some thought that Roosevelt was making the government too powerful and destroying freedom. Others thought he did not go far enough and favored banks and businesses. The right (the too far people) formed the American Liberty League.
