US Economy in 1920s
What two words best describes the U.S. economy in the early 1920s?
Flourishing and Expanding
What problem resulted from Americans relying heavily on credit?
Unmanageable debt
What event marked the stock market crash? BONUS: Year
Black Tuesday, October 29, 1929
How did many unemployed people survive in cities? What did they rely on?
Private donations/charity - Soup kitchens and bread lines
What type of formal federal relief system existed in the early 1930s?
TRICK: None did.
Which government policy protected U.S. businesses but hurt international trade?
Tariffs
Why did people rush to buy stocks during the 1920s?
Optimism and promises of quick profits
What were two major consequences of the stock market crash?
Bank failures and loss of savings
What caused the Dust Bowl? (4)
Overproduction, loss of prairie grass, drought, and wind
Why did some children run away from home?
To reduce the burden on their families
Why did tax breaks for the wealthy contribute to economic problems?
They reduced government revenue
What is speculation?
Buying stocks hoping for rapid gains
What happened to many workers who kept their jobs during the Depression?
They faced wage cuts and reduced hours
What was a major effect of the Dust Bowl? HINT: movement
Migration west by displaced farmers
What belief shaped Hoover’s response to the Depression?
Rugged individualism
Which industries struggled after World War I due to reduced demand?
Railroads, mining, lumber, steel, and clothing (textiles)
What does “buying on margin” mean?
Borrowing money to buy stocks
What were “Hoovervilles”?
Shantytowns built by homeless Americans
Who were “Okies”?
Migrant farmers fleeing Dust Bowl regions, often heading to CA for work
What were “Hoover flags”?
Empty pockets turned inside out
What was deflation’s impact on farmers?
Reduced incomes due to falling prices
Why was buying on margin risky?
Borrowed money had to be repaid even if prices fell
Why were shantytowns called “Hoovervilles”?
They criticized Hoover’s response to the Depression
Who were hoboes?
Migrant workers, usually single men, traveling around and often seeking work
What was one major criticism of Hoover’s economic policies during the Depressio? HINT: think about focus
They focused on helping big businesses instead of families