Causes of the Great Depression
On October 29, 1929, this catastrophic stock market event sent investors into a panic, causing stock prices to plummet and leading to widespread financial losses.
What is Black Thursday?
What are Hoovervilles and how did they get their name?
These makeshift communities for the homeless were named after President Hoover.
FDR reassured the American public through these informal radio speeches.
In 1932, Americans overwhelmingly voted for this Democratic candidate, who promised a “New Deal” to help the nation recover from the Great Depression.
FDR
Provided jobs for young men in conservation projects.
Civilian Conservation Corps (CCC)
what happens to the price when there is low demand of a good? How did overproduction and low demand become a cause of the great depression?
When demand is low, prices fall due to oversupply. During the 1920s, factories and farms overproduced goods, but low wages meant people couldn’t afford them. This led to business cuts, layoffs, and a cycle of declining spending, helping cause the Great Depression.
Many unemployed people waited in long lines to receive free food from charities.
What are breadlines?
Under which president did the federal government expand and which did it shrink?
FDR
Hoover
Although the New Deal provided relief and recovery, it did not fully end the Great Depression. Instead, this global event finally lifted the U.S. economy out of crisis.
WW2
Agricultural Adjustment Act (AAA)
Paid farmers to reduce production to stabilize prices.
What is unequal wealth distribution?
A small percentage of the wealthiest Americans controlled most of the country’s money, while the majority of workers and farmers struggled financially. This imbalance contributed to the economic downturn.
This group of World War I veterans marched on Washington, demanding early payment of their promised bonuses. People were very upset about how President Hoover reacted to their protests.
Who is the Bonus Army?
What is a Bank Holiday and what was its purpose?
A Bank Holiday was a temporary closure of all U.S. banks ordered by FDR on March 6, 1933, to stop panic-driven bank runs. During this time, banks were inspected, and only stable ones reopened. This restored public confidence and led to the Emergency Banking Relief Act, a key step in the New Deal
What is the New Deal?
The New Deal was FDR’s plan to combat the Great Depression by creating jobs, stabilizing the economy, and expanding government programs like Social Security and bank regulations to prevent future crises.
This key program from the New Deal continues to provide financial assistance to retirees and disabled individuals.
Social Security Act
What is buying on margin? When is it good and when is it bad?
investors borrowed money to purchase stocks, expecting stock prices to rise so they could sell for a profit.
If stock prices rise, the buyer can sell the stocks, repay the loan, and make a profit.
When It’s Bad
If stock prices fall, the buyer still owes the loan but has nothing to sell to repay it, resulting in debt..
Due to drought and poor farming practices, this environmental disaster forced thousands of farmers to migrate west.
What is the dust bowl
This 1937 labor protest at General Motors involved workers refusing to leave their factory until their demands were met. It led to major victories for labor unions.
What is the Great Sit-Down Strike?
What are the three R's and define them:
Relief (direct help for the unemployed and poor)
Recovery ( temporary programs meant to restart the economy and create jobs)
FDR’s first three months in office were extremely productive, with Congress passing numerous laws to combat the Great Depression. This period became known as:
First 100 days
What is the Hawley-Smoot Tariff?
1930 tariff significantly raised taxes on imported goods. However, it backfired when other countries retaliated by imposing their own tariffs, reducing global trade and worsening the Great Depression.
Many Dust Bowl migrants were called this term by west coasters, even if they weren’t from Oklahoma.
Who are Okies?
In one of the most controversial moments of his presidency, Hoover ordered the U.S. Army to clear out this group of veterans who were peacefully protesting for early payment of their promised money. The violent removal shocked the public and worsened Hoover’s image.
Bonus Army
Main Difference between the First and Second New Deal
the First New Deal focusing on immediate relief, and the Second New Deal focusing on long-term reform.
This agency provided emergency loans to struggling homeowners so they wouldn’t lose their houses to foreclosure. (We learned about it last unit with redlining)
HOLC Home owners loan corporation