The Great Depression Key Terms

Great Depression

The worst economic crisis in American history

Causes of the Great Depression

Republican policies, consumer debt, overproduction, and

Trickle down economics

A republican policy of Herbert Hoover that lifting tax cuts from the wealthy would trickle down to the poorest and help businesses, benefit the workers with better salaries, and the workers would spend more money

Huge tax breaks

The Republican party believed that huge tax breaks would encourage the wealthy to spend more, but nothing trickled down to the poor

The middle class

Most responsible for providing for the lower class

Farms faced the great depression..

In the 1920s, (2 decades instead of 1)

Europe loans

the u.s loaned money Europe that they could not pay back because they needed for reparations. no goods sent to countries

Unequal distribution of wealth

Over half of families were living below the poverty line when the wealthy were earning more but did need to purchase as many goods