Category 1: The Crash of 1929
In what month and year did the stock market crash?
October 1929
What does overproduction mean?
Producing more goods than people can buy
What were shantytowns called during the Depression?
Hoovervilles
Who was president when the Depression began?
Herbert Hoover
Who was elected president in 1932?
Franklin D. Roosevelt
What was “Black Tuesday”?
The worst day of the stock market crash (October 29, 1929)
What is underconsumption?
People not buying enough goods
What was a common problem for Americans in the 1930s?
Unemployment
What was Hoover’s basic belief about government help?
Limited government involvement
What were FDR’s programs to fix the Depression called?
The New Deal
What risky practice caused many people to lose money during the crash?
Buying stocks on margin
How did unequal distribution of wealth hurt the economy?
Most people didn’t have enough money to spend
What were “bread lines” for?
Getting free food
What nickname did critics give Hoover’s shantytowns?
Hoovervilles
What were the three main goals of the New Deal?
Relief, Recovery, Reform
What happens when stock prices suddenly drop sharply?
A market crash
How did weak banks contribute to the Depression?
Banks failed and people lost their savings
What natural disaster made things worse for farmers?
The Dust Bowl
What did Hoover believe businesses should do during hard times?
Help voluntarily
What program created jobs building roads and parks?
What program created jobs building roads and parks?
Why were investors unable to repay their loans after the crash?
Stock values collapsed
What problem in farming helped cause the Depression?
Farmers produced too much and prices dropped
Why were many families forced to move west?
To find jobs and better living conditions
Why did many Americans blame Hoover?
He didn’t act quickly enough to fix the crisis
What program helped insure bank deposits?
FDIC