Economic Trouble
What happens when wages stay the same while prices increase?
Consumers have less purchasing power. (Inflation)
In what year did the stock market crash?
1929.
What happened to many banks during the Great Depression?
They ran out of money and closed.
Who defeated Herbert Hoover in the 1932 election?
Franklin D. Roosevelt.
Who did FDR defeat in the 1932 election?
Herbert Hoover.
What is it called when people spend more money than they can afford?
Overbuying on credit.
What was October 29, 1929, known as?
Black Tuesday.
What were the shantytowns built by homeless Americans called?
Hoovervilles.
What was the name of FDR's collection of programs designed to fight the Depression?
The New Deal.
Who did FDR defeat in the 1936 election?
Alfred Landon.
What percentage of income growth went to the wealthiest 1% from 1920–1929?
75%
Approximately how much money was lost on Black Tuesday?
Over $15 billion.
What percentage of Americans were unemployed by 1933?
25%.
What were the three main goals of the New Deal?
Financial reform, relief for the needy, and economic recovery.
Which political party gained control of Congress after the 1932 election?
The Democratic Party.
Why did unequal wealth distribution hurt the American economy?
Most Americans could not afford to purchase enough goods.
How much money had been lost by the middle of November 1929?
Over $30 billion.
Why did farmers destroy crops and livestock during the Depression?
They hoped to create shortages and raise food prices.
What was the purpose of FDR's Brain Trust?
To provide FDR with different ideas and perspectives for solving the Depression.
Why did many Americans criticize President Hoover's response to the Great Depression?
He believed the economy would recover on its own and did not provide enough direct assistance to struggling Americans.
How did overbuying on credit contribute to the economic problems of the late 1920s?
Americans accumulated debt and eventually could not afford to keep purchasing goods.
Why did the stock market crash eventually affect Americans who had never invested in stocks?
Businesses and banks failed, causing unemployment and financial hardship throughout the economy.
Why did the Great Depression also hurt European economies?
Americans bought fewer European products, reducing international trade.
What two important laws were passed during the Second New Deal?
The Wagner Act and Social Security Act.
What does FDR's landslide victory in 1936 suggest about how Americans viewed his New Deal policies?
Many Americans supported his leadership and believed his programs were helping the country.