Causes of the Great Depression
What year did the Wall Street Crash occur?
1929
What percent of men were unemployed by 1933?
25%
What was Hoover’s general view on presidential intervention?
The president should not interfere in the economy
What did Roosevelt do with the banks in his first week?
Closed them for 4 days
What act created unemployment insurance and pensions?
Social Security Act
What financial institution increased interest rates in 1928?
The Federal Reserve Bank
What happened to small banks during the Depression?
Many closed, and people lost savings
What tariff did Hoover sign in 1930, worsening trade?
Smoot-Hawley Tariff Act
What act gave the government control over banks and money supply?
Emergency Banking Act
What tax targeted the wealthy in 1935?
Wealth Tax
What sector of the economy struggled with overproduction and falling prices?
Agriculture
Why did homelessness increase?
People couldn’t pay mortgages
What act aimed to prevent homelessness in 1932?
Federal Home Loan Bank Act
What organization built dams and provided electricity?
Tennessee Valley Authority (TVA)
What movement wanted pensions for everyone over 60?
Townsend Plan
What problem was caused by people putting money into stocks instead of industry?
lack of investment
What government safety net did not exist at the time?
Unemployment benefit / welfare state
What agency gave loans to prevent business collapse?
Reconstruction Finance Corporation
What act regulated working hours and wages?
National Industrial Recovery Act
Who founded the Share Our Wealth Society?
Huey Long
What economic issue caused prices and demand to fall?
deflation
How did falling demand impact the economy?
Reduced production and job loss
What did Hoover refuse to support in 1930?
Unemployment insurance
What was the purpose of the Glass–Steagall Banking Act?
To prevent banks from speculating with people’s money
What institution declared several New Deal acts unconstitutional?
The Supreme Court