The Great Depression

What did some Americans attribute the Great Depression to?

A regular contraction in the nation's business cycle.

What challenges did farmers face after WWI?

Crop demand dropped

What is a "rural depression"?

Farmers’ inability to pay debts

How did the uneven distribution of wealth contribute to the Depression?

1% of Americans earned as much as the bottom 42%

What percentage of radios and cars were bought on credit by the end of the 1920s?

80% of radios and 60% of cars.

What caused the 1929 stock market crash?

Stock speculation

What were the main causes of the Great Depression?

Low interest rates

How many banks failed by 1932?

25% of the nation’s banks.

What was the Hawley-Smoot Tariff?

A 1930 law that raised taxes on imports

What was the unemployment rate by 1933?

24.9%.

What were "breadlines"?

Lines where people received free food from charities or public agencies.

What were Hoovervilles?

Shantytowns made of tents and shacks on public land or vacant lots.

What happened to crop prices between 1919 and 1932?

Prices plummeted—e.g.

What was the Dust Bowl?

A period of severe drought and soil erosion in the Great Plains during the 1930s.

Who were "Okies"?

Farmers leaving the Great Plains

How were minorities affected during the Depression?

African Americans faced 50% unemployment

What book captured the struggles of migrant farmers during the Dust Bowl?

The Grapes of Wrath by John Steinbeck.

What was Herbert Hoover’s belief about solving the Depression?

He believed in "rugged individualism" and that government should not directly help individuals.

What was Hoover’s strategy of "volunteerism"?

Encouraging businesses to maintain wages and employment

What was the Reconstruction Finance Corporation (RFC)?

A federal program providing loans to banks

What were the outcomes of Hoover’s volunteerism and RFC policies?

They failed to significantly improve conditions; businesses and banks didn’t reinvest in jobs or loans.

What actions did farmers take to protest economic conditions?

Destroyed crops

What was the Bonus Army?

WWI veterans who marched on Washington in 1932 demanding early payment of their promised bonuses.

How did Hoover respond to the Bonus Army protest?

He sent Gen. Douglas MacArthur to clear the protest with federal troops

How did Hoover’s response to the Depression affect his reputation?

His actions