Great Depression
What was the Great Depression?
The Great Depression was the longest and most severe economic downturn in American history.
What was the Prohibition?
Prohibition was when the government made it illegal to make, sell, or transport alcohol.
What is the New Deal?
The New Deal was the government stepping in to help people, fix the economy, and prevent future problems.
What is a command economy?
System where the government owns everything
Was the depression worldwide? Explain why or why not?
Yes, the world was connected by trade and money. Many countries owed money to one another after World War I which was worsened by the economy crashing.
Why did organizations fight for Prohibition?
They believed that people’s lives would be improved if they did not drink too much and become drunk
How did the government's role change after the New Deal?
The New Deal placed the government on a new path of active involvement in the economy through creating new jobs and through regulation
What is a mixed economy?
Includes both private ownership and government involvement
How did the Treaty of Versailles contribute to the international debt after World War I?
Germany owed a lot of war reparations to other nations, which eventually led to missed payments and forced other nations to depend on loans from the U.S.
How did the New Deal reshape the nation’s political culture?
The New Deal brought in the idea that the government is responsible for the welfare of the nation’s citizens
What is a market economy?
A system where an open market is emphasized.
What did people lose when the banks failed?
When the banks failed, people lost their life savings
What is the main difference between a market economy and a command economy?
In a command economy, the government controls everything,
In a market economy, businesses and people decide what to make and buy
What is the effect of this cause?
Cause: Stock Market Crash of 1929
Effect:______________________
Economic system crash