Causes of the Great Depression
What is buying on margin?
Investors buy stock by borrowing money from a bank or broker
Shantytowns that popped up in cities for those who couldn't afford housing
Hoovervilles
True of false: The New Deal ended the Great Depression
False
Created a retirement plan for the elderly, allowing the younger generation to get jobs
What event got the US out of the Great Depression
World War II
Why did the Market Crash?
Large groups of investors sold their stock simultaneously, causing the value of those stocks to plummet.
What were Fireside Chats?
What are the 3 Rs of the New Deal
Relief, Recovery, Reform
Created Farm Subsidies, paying farmers to not plant crops to increase the value of their crops
Agricultural Adjustment Act
Describe what Capitalism is
a country's trade and industry are controlled by private owners for profit, rather than by the state (government)
What is a Bank Run?
A large amounts of people taking out large quantities of money from banks leading to shortages in currency
What did Hoover do to try and create jobs during the Depression
Created public work programs like the Hoover Dam
List two reasons why people opposed the New Deal
Increased taxes
Gave the Government too much power
Threated individual freedoms
Increased national debt
Built levees around TN Valley
Brought electricity to rural areas
Tennessee Valley Authority.
The Agricultural Adjustment Act is an example of maintaining or reforming Capitalism?
Reforming
How did banks contribute to the Great Depression
Banks loaned out money and didn't have enough currency in reserves to deal with bank runs
What happened to banks once the depression started
They started closing and freezing lines of credit
Describe what the Social Security Act is and how it helped people during the Depression
It created a pension/retirement plan for American Citizens allowing the elderly to receive retirement payments, which opened jobs for younger generations.
Created Jobs for young Americans working in conservation and forestry projects
Civilian Conservation Corps
Ford Motor Company laying off 75,000 workers is an example of Maintaining or Reforming Capitalism
How did Credit contribute to the cause of the Great Depression?
After the bank runs and the stock market crash, people didn't have the money to pay back loans and credit to people leading to a credit freeze
List two things that businesses did to maintain Capitalism?
They laid people off and lowered worker wages
How did the New Deal impact African Americans
Increased unemployment amongst African Americans
New Deal Programs paid them less than others
gave federal grants to states that funded salaries for government workers as well as local soup kitchens and other direct-aid to the poor programs.
Federal Emergency Relief Administration
List two major effects of the New Deal
Made the US a welfare state
Increased the power of the President