Lesson 1
What factors caused the stock market crash?
Investors borrowed money to buy shares when prices were rising so they could sell the stock at a higher price and make money. When stock prices began to decline, many people sold their stock. As more stock was sold, prices fell further. People panicked and many investors had to sell at a loss.
What actions did Roosevelt take during the Hundred Days to try to help the nation’s collapsing economy?
He temporarily closed the nation’s banks to prevent more from failing. He brought new programs to Congress to aid the economy. He gave fireside chats on the radio to build public confidence in recovery.
In what ways did the Depression impact the lives of ordinary Americans?
The Depression caused widespread unemployment. People had no income and often lost their houses and farms. People went without food and medical care. Families broke apart.
Why did many business leaders oppose the New Deal?
Some business leaders thought that the government was interfering with business, spending too much money, becoming too powerful, and threatening individual liberty.
What factors contributed to the start of the Great Depression?
As people had less money to spend, goods piled up in warehouses. This caused factories to slow production and lay off workers, which resulted in even less spending. People had no income and often lost their houses and other property.
What do you think President Roosevelt meant when he said "The only thing we have to fear is fear itself"?
What Roosevelt meant was that fear and uncertainty had helped cause the Depression and people’s fears and uncertainty were helping prolong the Depression and make it worse. Roosevelt took steps, such as closing and inspecting the banks, starting his fireside chats, and introducing programs to combat the Depression in his first hundred days, to relieve people’s fears and give them confidence that the economy would recover.
Why was the Depression especially hard on African Americans and Latinos?
These two groups suffered from discrimination, resentment, and high rates of joblessness.
How did Social Security launch the nation's welfare system?
It was the first time the national government took responsibility to promote the general welfare of all citizens and provided assistance to its poorest and neediest citizens.
What was President Hoover's approach to the economic crisis?
Hoover authorized spending on public works. Congress created the Reconstruction Finance Corporation (RFC). The RFC lent money to businesses and gave funds to local agencies.
What disease did Roosevelt suffer from?
Polio
How did the entertainment industry help people cope with the Great Depression?
The entertainment industry provided people with the variety of entertainment they needed and wanted to help them forget their problems
How did the Supreme Court view Roosevelt's New Deal?
The Court considered some of its programs to be unconstitutional and struck them down.