Causes
What is laissez-faire economic policy?
Laissez-faire meant the government did not regulate businesses
What happened on Black Tuesday?
The Stock Market crashed on Black Tuesday, October 29, 1929
Who was President at the start of the Depression?
Herbert Hoover
What were the makeshift towns for the homeless called?
Hoovervilles were shantytowns where homeless Americans lived
What is buying on margin?
Buying on margin = buying stocks with borrowed money
Why did overproduction hurt the economy?
Overproduction led to falling prices and surplus goods that no one could afford
What is a bank run?
A bank run is when many people withdraw their money at the same time, causing bank collapse.
Who led the Bonus Army protest?
The Bonus Army was made up of WWI veterans demanding early bonuses.
What group faced a 50% unemployment rate?
African Americans faced unemployment rates as high as 50%
What was the Hawley-Smoot Tariff supposed to do?
The Hawley-Smoot Tariff raised taxes on imports to protect U.S. industries
How did installment plan debt contribute to the Depression?
People built up too much debt on installment plans and stopped spending
Why did many banks fail after the stock market crash?
Many banks failed because they had invested customers' money in the stock market.
Who was elected in 1932 promising a "New Deal"?
Franklin D. Roosevelt
Why did many families delay marriage and children?
Families delayed marriages and children because they could not afford to support a family
What were "Okies"?
"Okies" were farmers from Oklahoma and nearby areas who moved to California during the Dust Bowl
What risky practice caused people to lose their investments when the market crashed?
Buying on margin caused people to lose more money when stock prices crashed
How did Hoover respond to the economic crisis?
Hoover mostly resisted government intervention and urged businesses/workers to "work harder."
What was Franklin D. Roosevelt's approach to solving the Depression called?
The New Deal
Why did some families abandon women and children during this period?
Many husbands abandoned families because they couldn’t provide for them financially
What natural disaster worsened farming conditions in the Midwest?
The Dust Bowl refers to the ecological disaster where massive dust storms ruined farmland
Name two ways the government's lack of regulation contributed to the collapse.
(1) Few banking rules allowed risky investments, (2) Companies cut wages while making risky loans.
How did the Hawley-Smoot Tariff make the Great Depression worse?
The Hawley-Smoot Tariff worsened the Depression by decreasing international trade and raising prices.
How did Hoover's response to the Bonus Army affect his popularity?
Hoover's harsh treatment of the Bonus Army protest made him more unpopular.
What was life like for migrant workers who fled the Dust Bowl?
Migrant workers lived in poor conditions, often in farm labor camps with little stability.
Name two major impacts of the Dust Bowl.
(1) Crop destruction and (2) mass migration out of the Midwest to places like California.