The Nation's Sick Economy
Within the business world, what were some of the early warning signs that a depression was in the near future?
Basic industries barely made a profit (rail, textiles, steel) . Even the 20’s novelty industries weakened--automobile, construction, consumer goods.
How did credit allow Americans to live beyond their means?
Consumers could buy things now and pay for it later--- credit was easily available and many people had trouble paying off their growing debt so they cut their spending to cover debt
Following the market crash, why couldn’t some people access the money they had deposited into banks?
The banks invested people's money in the stock market
How did newly unemployed American’s handle their lack of housing and food?
Many Americans were forced to live on the street or in parks—in boxes/crates. Shantytowns popped up and people begged, dug through the garbage or ate at Soup kitchens and waited in breadlines.
In the early years of the depression, how did the federal government provide relief to the American people?
They didn’t—there was no system of relief. Instead charities and cities tried to help people.
What world event, prior to the Roaring 20’s, prompted farmers to increase planting acreage and take out more loans for land and equipment?
WWI
What did the unequal distribution of wealth mean for most Americans?
They couldn’t full participate in the economic advances of 1920’s
What happened to unemployment rates in the depression?
Rose from 3 percent to 25 percent.
How did the Great Depression affect minorities?
Minority groups were the first to be laid off, had higher unemployment rates and received lower wages. Dealt with racial violence stemming from job competition. Many Mexicans returned to Mexico or were deported by the government.
Why did working women become targets of resentment during the depression?
People believed women had no right to work while there were men who were unemployed.
What happened to rural banks as a result of farmers defaulting on loans?
Banks began to fail
Under the Hoover administration, what had become the most visible symbol of a prosperous American economy?
The Stock Market
What was the purpose of the Hawley-Smoot Tariff?
Designed to protect American farmers and manufacturers from foreign competition—put a high tax on foreign purchases.
How did the depression affect people in rural areas (i.e. farmers)?
Most could grow food for their families but many lost their land and were forced to become tenant farmers.
How were children affected by the depression?
Many suffered from malnutrition and starvation, lacked of access to education, and many were forced to work in horrible conditions.
What are price-supports?
The maintenance of a price at a certain level through government intervention
What events took place on black Friday?
The bottom fell out of the market, Shareholders frantically tried to sell stocks before prices lowered even more—16.4 million shares sold that day--- many couldn’t find buyers and people who had bought stock on credit were stick with huge debts or lost all their savings.
What was the unwanted result of the Hawley Smoot Tariff?
Unfortunately, it also made it harder for other countries to buy American goods and increased unemployment. World trade fell more than 40%.
What caused the Dust Bowl?
Farmers used tractors to plow up grasslands and turn them into farmland. Without the prairie grass to protect the land and after over farming the land became unsuitable. Drought-like conditions and high winds carried dust hundreds of miles and caused windstorms across the nation.
How did the Great Depression affect suicide rates?
They increased by more than 30 percent.
What 4 factors contributed to American’s buying less in the late 20’s?
Rising prices, stagnant wages, unbalance distribution of income, and overbuying on credit
Define “The Great Depression”.
A period of time from 1929 to 1940 where in the economy plummeted and unemployment skyrocketed.
What do economists site as the 4-main causes of the Great Depression?
What states were hit the hardest by the Dust Bowl?
Kansas, Oklahoma, Texas, New Mexico, and Colorado.
How did the Great Depression change Americans goals/life trajectories?
Many stopped receiving health care—some gave up dreams of college, many put off getting married or having children.